Norway’s HitecVision has moved to combine its Aberdeen-based Verus Petroleum business with NEO Energy, another UK-focussed oil company in the private equity fund’s stable.
Glenn Corrie, chief executive of NEO Energy, said on Wednesday the integration of Verus was a significant step towards creating a leading UK continental shelf independent.
Earlier this year NEO teamed up with Oman’s Petrogas to buy a package of UK North Sea assets from Total in a $635 million deal that will be run by a separate jointly owned subsidiary called Perogas NEO.
Corrie said: “Combined with the acquisition of the Total portfolio, NEO has a solid platform for growth and will be one of the top 10 independent producers in the region with ambitions to rapidly grow in the medium term.
“NEO is delighted to welcome Verus’ Aberdeen-based team and look forward to working with them to build a next generation UKCS operator.”
According to updates from Companies House in the UK, positions on Verus’s board — including of chief executive Alan Curran — have been terminated.
Upstream understands Curran will not have a role at NEO Energy but this has not been confirmed.
Verus built its production to about 18,000 barrels of oil equivalent per day, helped by three deals to acquire non-operating interests in UK North Sea fields.
It completed the most prominent — a $400 million transaction to buy Itochu subsidiary Cieco Exploration & Production, which brings a 23.1% interest in Dana Petroleum’s flagship Western Isles development — on 19 November.
It also acquired Premier Oil’s 47% interest in the Babbage field in the southern sector and Equinor’s 17% interest in the Alba field.
HitecVision, which has $5.5 billion under management, last December partnered with Eni to build Vaar Energi, now one of Norway's largest producers at 169,000 boepd.
It has paid out $1 billion in dividends to HitecVision shareholders in Vaar, according to Reuters news agency.