Energean Oil & Gas Plc excludes Algerian assets from Edison E&P acquisition

It reduces the scope of the transaction, and, reduces the deal consideration by US$150mln.

() has announced changes to its proposed deal to acquire Edison E&P, excluding assets in Algeria from the transaction.

It comes after the two firms encountered difficulties obtaining consent of the Algerian authorities – previously Edison had been invited to discuss a transaction with state-backed Sonatrech.

As a result of the exclusion, the deal consideration reduces by around US$150mln.

READ: Energean sees “excellent” volumes at Israeli discovery

Energean in July stuck a deal to acquire Edison for US$750mln. It sees the Israeli firm pick up producing assets in Egypt, Italy, Algeria, the UK North Sea and Croatia, development assets in Egypt, Italy and Norway.

Later, in October, it inked a contingent deal to sell-on Edison’s North Sea portfolio to Neptune Energy for US$250mln in cash.

Today, the company told investors that it is working to complete the remaining Edison acquisition as soon as is possible in 2020.

In turn, Energean thereafter intends to complete the sale to Neptune as soon as reasonably practicable.

FPSO hull sails away from Chinese shipyard

Elsewhere, in a separate statement, Energean announced the sail away of the FPSO hull from a shipyard in China.

It is now being towed to the Sembcorp Marine Admiralty Yard in Singapore, for further construction, before it is mobilised to the Karish field in Israel for installation.

Energean described the sail-away as a key milestone for the Karish project timetable, which presently sees ‘first gas’ on track for H1 2021.


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