French energy firm Engie is reportedly in advanced talks to sell its oil and gas exploration and production business.
The company has been in talks with Neptune Oil & Gas to sell 70 percent in Engie E&P for around $3.6 billion, Reuters has reported, citing an unnamed source familiar with the matter.
Reuters has reported that talks were allegedly „going well,“ and might be closed soon. However, the news agency has also said that there are other factors potentially affecting the deal – rising oil prices, and China Investment Corporation’s wish to boost its stake in Engie E&P.
The Chinese company currently owns 30 percent in Engie E&P, which it acquired in December 2011.
At the end of 2016, the Engie E&P had 1741 employees, 2P reserves of 672.4 million barrels of oil equivalent, almost 80 percent of which was natural gas.
The company’s assets are spread across Norway, The Netherlands, Germany, UK and others.
Offshore Energy Today has reached out to Engie, seeking more info on the allegedly imminent deal. We will update the article with any response we receive.
Who is Neptune Oil & Gas
Neptune Oil & Gas, the firm reportedly looking to buy Engies’s E&O unit, is an oil and gas investment company established back in 2015 by the former Centrica manager Sam Laidlaw.
At the time of the founding Neptune said it would focus on investing in large oil & gas portfolios that may come available as a result of current energy market dynamics. It also said funding would be provided by The Carlyle Group and CVC Capital Partners.
Offshore Energy Today Staff