Neo Energy completes Total deal for UK North Sea Assets

Neo Energy, backed by Norwegian private equity house HitecVision, has completed the acquisition of a package of UK North Sea oil and gas fields from Total.

The deal adds production of around 23,000 barrels of oil equivalent per day and reserves of 51 million barrels to the Neo Energy portfolio.

The final acquisition fee, is understood to be lower than the initially agreed price of $635 million (£485m) and includes operated stakes in the Dumbarton, Balloch, Lochranza, Drumtochty, Flyndre, Affleck and Cawdor fields, and non-operated interested in Golden Eagle, Scott and Telford, managed by Chinese firm Cnooc.

Maersk Oil owned the fields before it was bought by Total in March 2018.

Through the deal Neo Energy also takes on more than 60 employees.

Neo Energy was created in October 2019 through the combination of Neo E&P and Aberdeen-based Verus Petroleum, both of which were Hitec-owned investment vehicles focused on the North Sea.

Paul Harris, chief operating officer and interim chief executive of Neo, said: “The expeditious completion of this transaction is a major milestone for Neo Energy as we build a next generation North Sea operator.

“I am extremely excited by the quality of both the asset portfolio and the group of over 60 outstanding professionals we have assembled.

“We have quickly established Neo as a leading UKCS independent with a solid platform from which to continue to deliver our sustainable growth strategy.

“Underpinned by a meaningful production base and development opportunities, I look forward to embarking on this next chapter in Neo’s development.”

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