Japan-based JX Nippon Oil & Gas Exploration has agreed to divest its UK business to NEO Energy Upstream UK at an enterprise value of $1.65bn.

The business involved in the deal, called JX Nippon Exploration and Production (U.K.) or simply JX UK, has non-operated interests in various producing fields and related infrastructure in the UK North Sea.

NEO Energy, which is backed by HitecVision, is a full-cycle North Sea operator in the UK Continental Shelf.

Through the deal, NEO Energy will gain JX UK’s stake of 20% in the Mariner field and a stake of 18% in the Culzean field. However, it excludes the interests of JX UK in the Andrew Area.

The Mariner field, which is operated by Equinor, has been producing since August 2019. On the other hand, the Culzean gas condensate field is operated by TotalEnergies and has been producing since June 2019.

JX Nippon Oil & Gas is the upstream arm of ENEOS Group, a Japanese integrated energy company.

According to JX Nippon Oil & Gas president and CEO Hiroshi Hosoi, the deal is part of the company’s ongoing strategy for managing its global portfolio to bolster its upstream profile by divesting projects that are no longer core to its business.

Hosoi said: “JX is part of the ENEOS Group and is committed to the Group’s “Long Term Vision for 2040″, which includes contributing to the development of a low carbon society. In line with this Long Term Vision, we have been investing in various sustainable projects in Vietnam, Malaysia, Australia and the USA, including the Petra Nova CCUS project, one of the largest carbon capture projects in the USA.

“This transaction is another step towards the Group’s Long Term Vision as we continue to contribute to the development of a low carbon society.”

The closing of the deal is contingent on customary regulatory approvals and certain preceding conditions.

Earlier this year, NEO Energy signed a deal worth up to $625m to acquire rival UK North Sea exploration and production company Zennor Petroleum.