Italian energy major Eni has reportedly commenced exclusive talks in a bid to acquire UK-based gas and oil exploration and production firm Neptune Energy.
Eni has increased its previous offer to under $6bn, reported Reuters, citing undisclosed industry sources.
According to the news agency, the sources revealed that the parties have recently begun a new stage of exclusive talks after months of slow negotiations that commenced in late 2022.
The sources said that Eni will slightly sweeten its offer for Neptune Energy, which continues to be in the $5bn-$6bn range.
Despite the exclusive discussions suggesting that negotiations have progressed considerably, there is no assurance that a deal will be signed, as per the sources.
Earlier this year, Bloomberg News reported that Neptune Energy is mulling the sale of the company after the breakdown of talks for a takeover by Eni over disagreements over the consideration.
In April 2023, the publication reported that TotalEnergies was considering to acquire the UK-based gas and oil producer and is among the potential buyers which have been engaged in early-stage talks with the latter.
Backed by founding investors Carlyle Group and CVC Capital Partners and later by Chinese sovereign wealth fund CIC, Neptune Energy has a diverse, gas-weighted portfolio. The upstream company has operations across Europe, North Africa, and Asia Pacific with an average production of 135,000 barrels of oil equivalent per day (boepd).
In Norway, the company has participation in seven producing fields, located in the southern part of the North Sea. It operates the Cygnus Alpha and Cygnus Bravo facilities to draw gas from the Cygnus field in the UK Southern North Sea.
The company also has onshore and offshore producing assets in the Netherlands, Germany, Egypt, and Indonesia.
