Canadian oil and gas company Tenaz Energy has announced an agreement to acquire NAM Offshore B.V. (NOBV) for €165m ($179.56m).  

The deal encompasses the acquisition of nearly all the offshore exploration and production assets of Nederlandse Aardolie Maatschappij (NAM), with the exception of the assets in the Ameland area.

NAM is a 50-50 joint venture between ExxonMobil and Shell. 

Tenaz Energy said the move is set to make it the second-largest operator in the Dutch North Sea. 

The acquisition includes a portfolio of production and exploration licences covering 2,415km² in the Dutch North Sea, with an average water depth of 34m.  

The assets currently produce approximately 11,000 barrels of oil equivalent per day (boepd), which is 99% gas and 87% operated by NOBV. 

Tenaz Energy expects the transaction to add 11,000boepd of production and 53.6 million barrels of oil equivalent of total proved plus probable reserves to its portfolio.  

The current production from the acquired assets comes from six hubs and two main production areas, with gas processing at the Den Helder Gas Plant.  

Den Helder processes about half of the gas produced in the Dutch North Sea, with the gas then delivered into the national grid. 

Upon completion of the deal, Tenaz will also become the operator of all three gas processing trains at Den Helder and the LoCal pipeline.  

Additionally, Tenaz will hold a 45.6% interest in the JDA LoCal system and interests in the WGT HiCal system. 

Tenaz president and CEO Anthony Marino said: “This acquisition is an important step in our strategy of securing value-enhancing 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.”