TotalEnergies Is Considering Buying Neptune For $5 Billion

TotalEnergies is considering acquiring independent Neptune Energy Group Ltd unnamed people with knowledge of the situation told Bloomberg on Thursday.

Bloomberg sources claimed that TotalEnergies and Neptune had early-stage negotiations regarding a potential acquisition.

With 552 mmboe in proved and probable (2P) reserves and an average daily production of 135,000 boepd, Neptune Energy Group is a gas-weighted firm (76%), backed by private equity investors Carlyle Group Inc. and CVC Capital Partners.

According to the corporate website, Neptune has properties in Norway, the Netherlands, the UK, Germany, Egypt, Algeria, Indonesia, and Australia. Its Cygnus field supplies 6% of the UK's total gas demand.

Neptune might fetch between $5 and $6 billion in a sale.

On Thursday afternoon, TotalEnergies' share price had increased by 0.69% to $64.50.

No agreement has yet been achieved during the current negotiations.

In November, Eni indicated interest in purchasing Neptune Energy as well, but negotiations broke down because to disparate values.

In late March, Neptune declared that when the Eni transaction fell through, it would go forward with new negotiations.

It was also reported that Neptune was working with consultants while it spoke with prospective purchasers.

While TotalEnergies might be trying to acquire Neptune Energy, it recently agreed to sell 2,200 retail petrol stations in Europe to Alimentation Couche-Tard Inc. of Canada for $3.3 billion, citing "the revolution of mobility" as a factor that has changed how customers use service stations.

To cut carbon emissions, TotalEnergies has a current target to reduce sales of crude oil products by 30% by 2030.