Tenaz Energy corp. announces agreement to acquire NAM Offshore B.V.
Published by Jack Roscoe,
Editorial Assistant
Oilfield Technology,
Tenaz Energy has entered into an agreement with Nederlandse Aardolie Maatschappij B.V., a 50/50 joint venture between Shell PLC and ExxonMobil Corporation, to acquire all of the issued and outstanding shares of NAM Offshore B.V. for base consideration of €165 million (US$246 million), prior to closing adjustments and contingent payments.
The transaction has an effective date of January 1 2024 and is expected to close mid-2025 following statutory merger clearances and operational transition activities.
NOBV is expected to produce nearly 11 000 boe/d1 (99% TTF2 natural gas) and generate approximately €90 million (US$134 million) of free cash flow based on current strip prices in 2024. NOBV’s cash flow profile is underpinned by a combination of physical fixed-price and collar hedges for 2024 through 2026.
Closing of the Acquisition will be funded through a combination of interim free cash flow between the Effective Date and closing, a €23 million (US$34 million) deposit paid to NAM, cash on hand, and available capacity under a new credit and delayed draw term loan facility with National Bank of Canada (NBC). Current estimate of required cash-to-close is approximately €30 million ($45 million) assuming a mid-year closing date.
Anthony Marino, President & CEO of Tenaz, stated “This acquisition is an important step in our strategy of securing valueenhancing acquisitions that have substantial organic investment opportunities. We welcome NOBV’s workforce of highly skilled and experienced professionals who will be critical to the continued success of Tenaz. We are delighted to invest in the revitalisation and sustainability of the Netherlands energy industry, and we look forward to establishing our Dutch headquarters near the existing NOBV office in the Netherlands.”
Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/19072024/tenaz-energy-corp-announces-agreement-to-acquire-nam-offshore-bv/
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