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North Sea asset boosts Oranje-Nassau Energie portfolio

As the largest privately owned Dutch exploration and production operating company, Oranje-Nassau Energie B.V. (ONE) is always looking for new opportunities to add promising oil & gas assets to its portfolio. The company has around 20 operated and non-operated interests in offshore oil and gas assets in the Netherlands, UK and Gabon and has established itself as a reputable Exploration & Production (E&P) company in this capital intensive industry.

Its success is down to its technical capabilities and entrepreneurial spirit. With its lean organisation ONE operates in an efficient way, adding value for all its stakeholders.  As ONE’s oil & gas reserves need to be replenished over time to counter the natural production decline of the fields, the company continually invests in its existing fields while acquiring new assets. A good example was the acquisition of the Sean asset offshore UK in 2015, which was a landmark transaction for ONE, an acquisition also funded by NIBC.

In 2017, ONE again turned to NIBC to partially fund the acquisition of a 30% stake in Breagh, a gas field in the UK North Sea, from Canadian E&P company Sterling Resources. The company was looking to extend and increase its existing facilities structure in the same way it had done with NIBC on the Sean acquisition.

The assignment

In what became a highly entrepreneurial transaction, NIBC arranged, coordinated and structured a junior facility, increasing its own exposure, with the remainder of the facility increase taken by third-party investors. The deal structure also enabled ONE employees to participate, thereby aligning their interests with the lender group.

Since the transaction was highly complex and underwent several changes, all parties had to be flexible and agile during the process.

Adding value

By having a deep-seated understanding of ONE’s business and the UK North Sea oil & gas markets, NIBC became a trusted and knowledgeable partner to its clients and other investors. The transaction enabled ONE to diversify its investor base and provide a firm and trustworthy bid to both sellers and UK authorities. The arranged junior facility is unique in the E&P sector and was fully tailor-made to the needs of ONE and investors in the facility.

Delivering results

With the transaction, ONE acquired a long-term gas asset in one of their key geographical focus areas and can thereby further fulfill its ambition to grow daily production and become a larger and even more robust E&P company. In addition, the financing facility has allowed ONE to further diversify its investor base and set the stage for future ancillary business opportunities with NIBC.This tailor-made financing solution contributes significantly in our growth ambitions. NIBC and the entrepreneurial spirit of Oranje-Nassau Energie are a good match. - Chris de Ruyter van Steveninck, CFO Oranje-Nassau Energie B.V.

 

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