Tenaz Energy signs deal for Shell-ExxonMobil joint venture assets in Dutch North Sea

Tenaz Energy Corp., Calgary, has agreed to acquire NAM Offshore BV (NOBV) from Nederlandse Aardolie Maatschappij BV (NAM), a 50/50 joint venture between Shell PLC and ExxonMobil Corp., for $246 million. Upon closing of the deal, expected mid-2025, Tenaz would become the second-largest operator in the Dutch North Sea.

This sale includes offshore gas fields, platforms, and pipelines, including the gas treatment plant in Den Helder in the Netherlands, with the exception of the gas extraction near and on Ameland. In 2023, these offshore gas fields together produced 1.1 billion cu m of gas, according to NAM.

Upstream assets consist of a portfolio of production and exploration licenses in the DNS comprising about 600,000 net acres. The licenses are about 60 km offshore in shallow water at an average water depth of 34 m. Current production is about 11,000 boe/d (99% gas, 87% operated) from six hubs and two main production areas, the joint development area and L02/L09 fields. Production is predominantly from the Permian-aged Rotliegend Sandstone at an average depth of 3,500 m. 

At close, Tenaz will become operator of all three gas processing trains at Den Helder as well as the LoCal pipeline feeding into it. Tenaz’s ownership in the midstream assets will be 45.6% in the joint development area LoCal system as well as 31.1% and 23.0% in the K13 and K13 Extension portions of the WGT HiCal system respectively. Tenaz will also become contract operator of the Northern Offshore Gas Transport (NOGAT) portion of Den Helder, but will not have an ownership position in or operate the pipeline feeding it. Tenaz will not be acquiring additional interest in the  Noordgastransport (NGT) system, maintaining its current 21.3% equity interest.