Neptune Energy announced that it has signed Sale and Purchase agreements with OKEA ASA and M Vest Energy AS whereby Neptune will divest its non-operated working interests in three producing fields and two export pipelines on the Norwegian Continental Shelf.

The assets Neptune is divesting include the producing Draugen, Brage and Ivar Aasen fields, as well as the Edvard Grieg Oil Pipeline and the Utsira High Gas Pipeline, located on the NCS.

As a result of this transaction, Neptune will no longer hold participating interests in these assets.

OKEA is to acquire a 2.2% interest in the Ivar Aasen Unit.

M Vest is to acquire a 0.8% interest in the Ivar Aasen Unit, 7.56 % in the Draugen field, 4.4% in the Brage Unit, 1.2% in the Edvard Grieg Oil Pipeline and 1.8% in the Utsira High Gas Pipeline.

The transaction underpins Neptune’s corporate strategy to focus its portfolio on core areas. In Norway these are the Gjøa, Gudrun, Njord, Dugong and Snøhvit fields.

The agreed consideration totals up to $35 million. All decommissioning liabilities will be transferred to the buyers.

The effective date for the agreements is 1 January 2022, subject to Ministry approval.

Natixis acted as financial adviser to Neptune.

About Neptune Energy Norge AS

Neptune Energy Norge is a subsidiary of Neptune Energy. The company is the operator of the Gjøa field in the North Sea. It has two operated development projects: Fenja and Duva. In 2020, the company made the Dugong discovery, which is now being considered for development. The Company is a partner in several producing fields: Bauge (under development), Brage, Draugen, Fram, Gudrun, Hyme, Ivar Aasen, Njord and Snøhvit. Neptune Energy Norge is a participant in a total of 81 licences. For the full year 2020, Neptune produced 55 kboepd in Norway.

About Neptune Energy Group

Neptune Energy is an independent global E&P company with operations across Europe, North Africa and Asia Pacific. The business had production of 142,000 net barrels of oil equivalent per day in 2020 and 2P reserves at 31st December 2020 of 601 million barrels of oil equivalent. The Company, founded by Sam Laidlaw, is backed by CIC and funds advised by Carlyle Group and CVC Capital Partners.

About OKEA

OKEA ASA (OKEA, OSE: OKEA) is an independent Exploration and Production (E&P) company and operator on the Norwegian continental shelf with a current production around 16,000 boepd. OKEA targets profitable production growth within the current portfolio combined with an opportunistic approach to M&A.

OKEA ASA is listed on the Oslo Stock Exchange under the ticker “OKEA”.