HitecVision mulling strategic options for UK oil producer NEO Energy

The Norwegian private equity firm’s options could also include a merger with another operator.

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.

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.

See Also:

• Challenger Energy signs AREA OFF-3 licence offshore Uruguay
• US to drive oil and gas project starts in North America up to 2028

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%.

Read the latest issue of the OGV Energy magazine HERE