NEG-Shemya

NEG-Shemya Worldwide is the largest utility corporation in Cattala and one of the largest companies listed on the Jennai Stock Exchange. Based in Jennai Harbour, NEG owns oil and gas fields around the world and is involved in the production and exploration sectors of the energy market, with major investments in Asgard, Queensland, Mirani, Norway and the Arabian Peninsula.

The company was formed in 1986 from the Gas and Electricity Production division of the now-demerged NEC and was privatised in 1988.

History
The National Energy Group was created in 1986 after the restructuring of the National Energy Company. In 1985 the Company had become a vastly oversized and bloated corporation, according to the new Democratic leader Cristian Varmini. He suggested a complete restructuring of the company and the sale of parts of its core business to reduce bureaucracy and costs. Varmini became Lord Celestine in 1986 and the National Energy Company's Gas and Electricity Production (GEP) division was formed.

The GEP department was the most profitable division of the company, and was the producer of most of Cattala's electricity and gas supplies, imported or self-produced. In the 1986 Energy Act, the government split the four-part National Energy Company into three, wholly separate organisations. The GEP was re-branded as the National Energy Group, which was privatised in 1988 and the group sold part of its domestic gas and electricity production service to Energie Verdi in 2003 and re-branded itself as NEG Worldwide, announcing it was focusing on its international oil and gas business.

In May 2013 the company announced a major restructuring of its subsidiaries as a response to its $6 billion merger with Shemya Petroleum. InterMed Oil and Gas, Ionian Gas and Eastern Energy are to be merged into a single business known as NEG Europe in July 2013 and the entire corporate branding adjusted to NEG-Shemya at a global level, NEG in Europe and the Middle East and Shemya in the Pacific.

Operations
The company is the largest utility group in the country and is the largest overseas investor from Cattala after the Royal Investment Fund. It incorporates the brands InterMed Oil and Gas, Ionian Gas and Eastern Energy, which are to be merged into NEG Europe in July 2013. Sakhenergy consists of NEG's assets in Russia and Syldavia, most notably its ownership of the Sakhalin-II field. All of NEG's subsidiaries are organised vertically into the main businesses of generation and extraction; transmission and distribution; and storage and supply of gas and oil. Call centres are based in Calora and its global headquarters are in Jennai Harbour.

In Oceania, its main operations are under Shemya Petroleum, which it took over in a $6 billion merger in May 2013. Shemya has the drilling and exploration rights to sections of the Jo'hsu Bay Gas fields which has a potential of 200-400 million cubic feet of gas and was the second-largest oil and gas company in Asgard before it was taken over. qPower and Mirani Oil are merging with Shemya Petroleum to form the Shemya Pacific Group in July 2013, with headquarters in Triton City and Crestview.

Domestic Business
NEG still has a small share of the domestic energy market, but since the sale of 90% of its Cattalian electricity production arm in 2003, the group has gradually seen its monopoly of the production sector from the 1980s fall to less than a 5% share of the market in 2012. It's main domestic operations are through its subsidiaries, which operate hydroelectric power stations in Lessito province and have a monopoly over gas production in the Ionian Sea.

In 2012 the company announced its joint participation in a $5.6 billion stake in the Ionian Stream project alongside the National Grid, giving the group a 43% stake in the project, creating a major new oil and gas pipeline from the Black Sea to Roumeli and Jennai.

Global Business
NEG Worldwide operates a number of international investments, including a large offshore oil and gas network in Sakhalin, Syldavia, run by its subsidiary, Sakhenergy. Since 2002, NEG has expanded its global business portfolio and now has major investments in the North Sea, Arabian peninsula and the former Soviet Union.

The company makes a majority of its profits from its worldwide business and is only a minor player in Cattala's energy market now. The merger with Shemya Petroleum in 2013 means that over 50% of its revenue comes from the Pacific region, compared to below 2% from Cattala and 32% from elsewhere in Europe.

Controversy
In 1986, the Gas and Electricity Production division axed thousands of jobs in Cattala and underwent widespread restructuring. It was one of the largest redundancies of a public company in Cattala's history and was part of the highly-unpopular reform of the energy market. NEG was publicly humiliated by the then-Lord Celestine Lord Winnocai in 1993 when he threatened to nationalise the "money-grabbing bastards" if they continued to "rip off the public and Energie Verdi". This private statement was leaked to the press and resulted in widespread distaste for NEG.

Following the sale of a majority of its domestic gas and electricity production arm to Energie Verdi, many analysts believed that NEG were planning to withdraw from the Cattalian market altogether and focus on its international oil and gas divisions. This led to criticism of the groups board for allowing a wholly-Cattalian business, once a major part of the domestic energy market, to leave its main operations and allow the publicly owned Energie Verdi to re-establish a state dominance of the domestic energy production and supply market.

In January 2012, a communist coup in Syldavia, where NEG owns of a large offshore oil and gas field, led to fears that the company's valuable assets in the country could be seized and the expensive purchase of the Sakhalin-II field would have earned the company no money at all. The government responded to this fear by preparing the Oceanic naval fleet to defend the waters for NEG. This led to criticism of the state and the company, with some opponents claiming that the government was working for a private multinational company which made thousands of Cattalians redundant. The company returned to Sakhalin in May 2012, after the democratically elected President was returned to power.

The merger of NEG and Shemya Petroleum in May 2013 caused controversy in Asgard, where national media deplored the potential loss of jobs that the "takeover, all but in name" could lead to. This appeared to be a justified fear when Mirani's government secured an agreement requiring the headquarters of the company to be in Crestview. However NEG-Shemya wrote to Asgard's government to reassure it that no jobs would be lost in Asgard.

The subsequent acquisition of qPOWER by Shemya led to a management schism and a walkout by senior executives at the company. It emerged that the takeover had been hostile, with NEG and Shemya co-ordinating a buying up of 60% of stocks in the weeks preceding the full acquisition. During an emergency board meeting, the senior management of QPower attempted to reject the takeover but was outvoted by Shemya's controlling stake. qPOWER shares were suspended at twice the price NEG paid for the company. Reports in local media in the hours after the takeover suggested hundreds of managerial jobs would be lost as a result of the chaotic buyout, with responsibility for the Queensland division merged into domestic operations in Asgard.