Global law firm Ashurst is advising JX Nippon Oil & Gas Exploration Corporation (‘JX’) on its agreement with NEO Energy Upstream UK Limited (‘NEO Energy’) for the sale of 100% share of JX Nippon Exploration and Production (U.K.) Limited, a subsidiary wholly owned by JX. The purchase price is based on the enterprise value of US$1.655 billion as at March 31, 2021.
JX UK holds multiple material non-operated interests in producing oil and gas fields and associated infrastructure in the UK North Sea, including a 20% interest in the Mariner field and an 18% interest in the Culzean HPHT gas field.
As part of JX’s divestment of its UK business, Ashurst is also advising on the sale by JX UK of its interests in the Andrew Area consisting of JX’s non-operated interests in the Andrew, Farragon and Kinnoull fields to bp.
Both transactions are subject to satisfaction of certain conditions precedent, including customary regulatory approvals.
The Ashurst team was led by corporate partner and Global Co-Head of Energy, Michael Burns, assisted by senior associate Naomi Nguyen and associates Lester Lim Kok and Zac Gordon-Boyd. Tax advice was provided by partner Tim Gummer and associates Martin Voelker and Laura Burt.
Partner Adrian Lawrence and senior associate Grahame Fischer advised on the finance aspects of the transaction, and partner Ruth Buchanan and associate David Pemberton advised on employment matters. Disputes partner Tom Cummins, corporate partners Richard de Carle and Harry Thimont and associate Lauren Garrett also assisted.
Commenting on the transaction, partner Michael Burns said:
“We’re very pleased to have worked with longstanding client JX to announce the signing of its deal with NEO Energy. This transaction is a key step forward in the ENEOS Group’s “long term vision for 2040″ to contribute to the development of a low carbon society.”
