Oil and gas exploration company Neptune Energy Group has signed a sale and purchase agreement to buy all the shares of Norway-based VNG Norge from German natural gas wholesaler, VNG.

Financial details of the acquisition have not been disclosed.

Neptune Energy expects the deal to provide a strong platform with wide operating skills for sub-sea development, drilling, production and exploration.

VNG Norge has production, development and exploration assets on the Norwegian continental shelf. It has a total of 42 licences, five producing fields and three development projects.

The company’s portfolio includes Fenja asset in the greater Njord area and Ivar Aasen asset at the North Sea / Utsira High location, both of which complement Neptune Energy’s current Norwegian assets.

“Neptune Energy expects that the deal to provide a strong platform with wide operating skills for sub-sea development, drilling, production and exploration.”

Fenja project, which is a sub-sea development, is set to be produced as a tie-back to the Njord production hub and will come on stream in 2021.

Neptune Energy Group executive chairman Sam Laidlaw said: “We are extremely pleased to announce the signing of the SPA to acquire VNG Norge, which provides us with our first acquisition since the completion of our purchase of Engie E&P, and is directly in line with our strategy of consolidating our position in key jurisdictions with high-quality and complementary assets.

“The addition of further long-life oil development opportunities in Norway, through one of our key production hubs, as well as adjacent production and exploration interests, is a further step towards delivering our ambition to create a leading international independent E&P company of significant scale.”

The acquisition, which is subject to approval by VNG’s supervisory board and other customary regulatory approvals, is scheduled to close in the fourth quarter of this year.