Norwegian private equity firm HitecVision is considering various strategic options, including a potential sale, for UK North Sea oil and gas producer NEO Energy, reported Bloomberg News.
These options could also include a merger with another operator, sources familiar with the matter told the news agency.
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The company’s deliberations are ongoing, and it has yet to make a final decision.
In 2021, NEO Energy purchased ExxonMobil’s non-operated oil and gas assets in the UK’s central and northern North Sea for more than $1bn (£781.37m).
NEO Energy acquired ownership stakes in 14 producing fields including Elgin Franklin, Fram, the Gannet Cluster, Penguins, Starling and Shearwater, in addition to interests in the associated infrastructure, from Exxon.
Producers in the UK have felt a significant blow from the implementation of the Energy Profits Levy in 2022, which increased the tax rate on oil and gas companies to 75%.
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By GlobalDataRecently, UK Chancellor of the Exchequer Jeremy Hunt prolonged this windfall tax for another year, extending it to 2029.
In November 2023, NEO Energy awarded a front-end engineering design (FEED) study contract to Apollo for the planned redevelopment of the Greater Buchan Area (GBA) on the UK Continental Shelf.
Under the plan for the GBA, NEO Energy will repurpose and redeploy an existing floating production storage and offloading (FPSO) unit.
The scope of the contract will cover FPSO asset repairs and improvements as well as process and marine-related late-life extension activities.
NEO Energy’s partners on the GBA project include Serica Energy and Jersey Oil & Gas.
The GBA comprises the P2498 and P2170 licences and has multiple oil and gas accumulations around 150km north-east of Aberdeen.
