Deal Insight
Neptune Energy buys ENGIE's upstream assets for US$2.6 billion
Report summary
Private equity-backed Neptune Energy is buying ENGIE's E&P business as the French utility exits the upstream. Neptune will pay US$2.6 billion for a 70% interest in Exploration & Production International ("EPI"). The remaining 30% of EPI is held by China Investment Corporation, which acquired its stake from GDF Suez in 2011 for US$3.2 billion. Upon completion of the ENGIE deal, Neptune will become the sole (100%) owner of EPI, implying a change in the nature of CIC's investment. EPI's commercial reserves base covers a large number of mostly gas assets. Europe accounts for three-quarters of our commercial reserves figure. The portfolio is expected to decline from 2018, but is highly cash generative for many years. Neptune intends to build a diverse international E&P business of scale and EPI offers an ideal starting point. It is not a surprise to see ENGIE exit the upstream. European utilities are focusing on a low-carbon future, and others have already left the sector. ENGIE has ...
Table of contents
- Executive summary
-
Transaction details
- Assets excluded
-
Upstream assets
- Country and key asset summary
- Deal analysis
- Upsides and risks
-
Strategic rationale
- ENGIE
- Norway
- Germany
- Netherlands
- UK
- Indonesia
- Algeria
- Egypt
- Oil & gas pricing and assumptions
Tables and charts
This report includes 11 images and tables including:
- Executive summary: Table 1
- EPI (70%) WM commercial reserves (mmboe): by country; by asset (top 10 only)
- EPI production by country (70% net)
- EPI (70%) WM commercial valuation (standalone): by country; by asset (top 10 only)
- Deal analysis: Table 1
- Deal analysis: Table 2
- Deal analysis: Table 3
- EPI (70%) cash flow forecast
- Oil & gas pricing and assumptions: Table 1
- Oil & gas pricing and assumptions: Table 2
- Upstream assets: Table 1
What's included
This report contains:
Other reports you may be interested in
09 November 2017
Total joins top LNG players with the acquisition of Engie's LNG business
Insight
Total joins top LNG players with the acquisition of Engie's LNG business
This deal propels Total into the top five largest LNG sellers
$1,05020 February 2018
Europe upstream week in brief: exploration success for Aker BP near Alvheim
Insight
Europe upstream week in brief: exploration success for Aker BP near Alvheim
Welcome to the Europe week in brief where we bring you quick, responsive opinion and analysis on what's going on in European oil and gas.
$1,35005 June 2017
Russia and the Caspian month in brief: Azerbaijan, Kazakhstan and Russia join OPEC cut extension
Insight
Russia and the Caspian month in brief: Azerbaijan, Kazakhstan and Russia join OPEC cut extension
In our 'Russia and the Caspian month in brief' report, we highlight the main stories of the past month, adding our opinion and analysis.
$1,350