Eni, Vaar buy Neptune in 4.9 bln deal
Neptune portfolio skewed towards natural gas
Deal to boost Eni, Vaar capacity to reward investors
Eni adds 4 bcm of gas supply for European clients

MILAN, June 23 Reuters Italian energy group Eni said that synergies from the 4.9 billion acquisition of privateequity backed Neptune Energy could reach 1 billion as the two groups integrate their operations across key geographies.

The acquisition announced on Friday is one of the biggest oil and gas deals in Europe in years and follows months of talks by Eni and its Norwegian unit Vaar to buy Neptune. It is expected to be completed in the first quarter of next year.

It fits the Italian group39;s plan to increase the share of gas in its total hydrocarbon production and is expected to boost its earnings immediately, Eni said.

Eni39;s top executives told analysts that synergies initially indicated at 500 million could double and cash flow from operations CFFO could increase by 900 million next year.

The geographic and operational overlap is striking, adding scale to Eni39;s Vaar Energy, bringing more gas production and carbon capture and storage CCSU opportunities to the remaining North Sea footprint, building on Eni39;s leading position in Algeria and deepening Eni39;s presence in offshore Indonesia, Eni39;s Chief Executive Claudio Descalzi said.

The acquisition would boost the outlook for the gas and LNG division, which last year was one of the drivers of the group39;s record…