July 19, 2024 [Reuters]- Canada’s Tenaz Energy on Thursday said it had entered into an agreement with NAM, a joint venture between Shell, ExxonMobil  and the Dutch government, to acquire all issued and outstanding shares of NAM Offshore B.V. for 165 million euros($180.33 million).

The Nederlandse Aardolie Maatschappij operates the Groningen gas field in the Netherlands.

Tenaz has operations in Canada along with offshore gas assets in the Netherlands.

In 2022, Shell and Exxon initiated the sale of NAM, one of the oldest natural gas production companies, along with stakes in the North Sea gas hub. Concurrently NAM independently launched a sale NAM Offshore B.V., its offshore assets.

The transaction, expected to close in mid-2025, includes all of NAM’s offshore exploration and production businesses, associated pipeline infrastructure, and onshore processing in the Netherlands, excluding assets in the Ameland area.

Once the deal is closed, Tenaz will become the second-largest operator in the Dutch North Sea, the company stated.

NAM Offshore is projected to produce nearly 11,000 barrels of oil equivalent per day (boepd), with 99% being natural gas, and generate approximately 90 million euros ($98.36 million) of free cash flow based on current strip prices in 2024.

The gas is sourced from the L02/L09 fields in the Dutch North Sea and processed at the Den Helder Gas Plant, which handles roughly 50% of the region’s gas, transported via the Northern Offshore Gas Transport pipeline.

Tenaz will also become operator of the NOGAT portion of Den Helder.

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