NEO Energy and Sval Energi sale rumours - what could the portfolios offer a buyer?

The upstream M&A market is currently red hot. Consolidation and scale are key deal drivers and the North Sea continues to punch above its weight for transactions.

The recent press reports that private-equity owner HitecVision is putting NEO Energy and Sval Energi up for sale, is bound to attract attention from North Sea incumbents and newcomers alike. The two companies were created in 2019 and since then HitecVision has spent billions scaling them up into prominent North Sea players. With the owners now seeking an exit, we analyse both portfolios utilising the power of Wood Mackenzie's Lens Upstream in the below video.

In this video, we discuss:

• What each entity looks like in terms of production, near-term investment, operating costs and emissions intensity
• What are the risks and opportunities associated with each portfolio?
• What could the key strategic drivers behind a potential acquisition be?
• What a potential buyer would look like

Watch now:

The current combined production for the companies is over 150 kboe/d but they offer different value propositions.

UK-focused NEO Energy has grown its North Sea business through a series of acquisitions and farm-in deals. The portfolio is weighted roughly 50:50 liquids and gas, with onstream fields forecast to deliver 80-85 kboe/d in 2024 and 2025. However, maintaining production in the 80-90 kboe/d range until the end of this decade will require the development of its pre-production assets - which carries more risk.

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