Neptune Energy Group has increased its footprint in the North Sea region through the €4.7bn acquisition of Engie E&P International.

The transaction allows Neptune to become an international independent E&P company with operations across the North Sea, North Africa, and South East Asia. The deal was previously agreed by the companies in May 2017.

Last year, the acquired assets produced 154,000 net barrels of oil equivalent a day.

Neptune Energy Group executive chairman Sam Laidlaw said: “Building on the success and hard work of the EPI team and leveraging its strong portfolio of assets, we aim to generate long-term sustained value for the countries in which we operate, our employees and for our investors in order to create a leading international independent E&P company within the next five years.”

The acquisition will enable Neptune to set-up a sustainable asset base throughout the exploration and production (E&P) value chain, in addition to providing a good balance of oil and gas.

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The strategic asset base includes Cygnus in the UK and Gjøa in Norway, alongside offshore operations in the Netherlands.

“This transaction highlights that the UK oil and gas sector continues to offer smart investors good commercial opportunities on the back of the huge efficiency improvements of recent years.”

Neptune noted that asset base in North Africa and South East Asia will strengthen portfolio by providing near-term gas volume growth to growing markets.

Meanwhile, Germany is said to offer a long-life oil production base.

Established in 2015, Neptune is backed by China Investment (CIC), Carlyle International Energy Partners (CIEP) and CVC fund VI.

The transaction was aimed at reducing ENGIE’s consolidated net financial debt by €2.4bn.

Oil & Gas UK CEO Deirdre Michie said: “Having an enterprising company like Neptune growing with the North Sea at the heart of its business is also good news for the future of the UK oil and gas industry.

“This transaction highlights that the UK oil and gas sector continues to offer smart investors good commercial opportunities on the back of the huge efficiency improvements of recent years.”