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Petrogas NEO to Build on Total Aberdeen Presence

rigzone 2019-07-11 18:59:39

No redundancies are expected as a result of Petrogas NEO UK’s deal to acquire several UK assets from Total, a Petrogas NEO UK representative has revealed to Rigzone.

The representative said the company intends to build on the current Aberdeen presence of Total and highlighted that Petrogas NEO UK has an aspiration to grow production to more than 100,000 barrels of oil equivalent per day over the next two to three years, through a combination of organic and inorganic growth.

Commenting on the Total deal, Usama Barwani, CEO of Petrogas, said, “five years back, Petrogas stepped into Europe by acquiring Chevron’s assets in the Netherlands, opening a new international heartland with vision of consolidation and growth in the North Sea”.

“This acquisition in the UK is a significant step in line with a wider vision, adding material asset base, a diverse portfolio and valuable talent pool,” he added.

John Knight, senior partner of HitecVision, said, “in the last few years we have clearly seen the creation of a ‘new European offshore’ in terms of ownership, investment and innovative financial models”.

“Private equity backed companies and joint ventures are emerging as among the largest investors in Norway and the UK. Larger companies are focusing their assets in Europe on a few key assets or exiting the region,” he added.

Petrogas NEO UK is jointly owned by Petrogas E&P UK Ltd, a subsidiary of Oman based Petrogas (a part of conglomerate MB Holding group) and NEO E&P, an investment platform of HitecVision.

Total revealed Wednesday that it had signed an agreement to divest several “non-core” UK assets to Petrogas Neo UK for $635 million. The transaction remains subject to approval from the relevant authorities and is expected to close in December.

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