Italian energy company Eni will take over Neptune Energy for USD 4.9 billion. The acquisition represents the largest cash transaction in the European O&G sector in nearly a decade. The acquisition is expected to be completed by the end of March 2024.

Eni has strategically prioritised gas as a key element of its growth strategy, especially after the impact of the Russian conflict in Ukraine, which disrupted the main gas supplies to Europe. Neptune Energy, whose main production comes from gas fields in the North Sea, North Africa and Asia, fits well with Eni's existing business in these regions. Eni has a strong focus on gas and aims for it to account for 60% of its production by 2030 and an even more significant share of over 90% by mid-century.

Eni, a multinational energy company headquartered in Rome, operates in 62 countries and employs more than 32,000 people. Its activities cover a wide range of sectors, including oil and gas exploration, production and supply, trading and transportation of natural gas, electricity and fuels. In addition, Eni operates refineries and chemical plants that process crude oil and other petroleum-based feedstocks, enabling the production of fuels, lubricants and chemical products.

Neptune, an independent upstream company, boasts a number of assets and operations focused on natural gas production in Western Europe, North Africa, Indonesia and Australia. Its portfolio stands out in particular for its competitive cost structure and commitment to low operating emissions. Neptune Energy, founded in 2015 by Sam Laidlaw, is currently owned by sovereign wealth fund China Investment Corporation and PE funds The Carlyle Group and CVC Capital Partners.

Neptune's owners originally sought an initial public offering last year, but there was insufficient interest. This situation was compounded by the growing hesitancy of investors to support oil and gas producers.