Energean will gain 226mmboe 2P reserves and 2C resources through the revised deal with the associated assets producing 58.7kboed in 2019

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Energean further revises deal with Edison. (Credit: aymane jdidi from Pixabay)

Energean Oil and Gas and Italy-based Edison have further revised their transaction announced in 2019, reducing the consideration to be paid to the latter to $284m after excluding the Algerian and Norwegian hydrocarbon assets.

After working capital, the UK-based oil and gas company anticipates paying $178m for its acquisition of Edison’s upstream operations in Egypt, Italy, the UK, Croatia, and Greece among others.

Additionally, there is a further consideration of up to $100m to be paid to Edison, which will be based on the commissioning of Cassiopea development gas project in Italy.

The deal is now expected to be closed within the year.

Energean will gain 226 million barrels of oil equivalent (mmboe) 2P reserves and 2C resources through the revised deal with the associated assets producing 58.7 thousand barrels of oil equivalent per day (kboed) in 2019.

Details of the original deal between Energean and Edison

As per the original deal, the consideration was $750m plus the $100m contingent payment with the UK-based Energean Oil and Gas agreeing to acquire the Italian energy company’s oil and gas business – Edison Exploration and Production (Edison E&P). The original deal included nearly 90 licences across nine countries in the Mediterranean and Northern Europe.

Edison said that its E&P assets in Norway and Algeria will remain within the company’s scope as long as market conditions enable better valorisation. The Italian energy company confirmed its strategy to exit from E&P activities in order to focus on renewables.

In April, the parties reached an agreement to exclude the Algerian assets from the deal due to regulatory hurdles in the country.

Energean also got Edison to exclude the Norwegian assets from the deal after its separate deal to immediately offload Edison E&P’s UK and Norwegian subsidiaries to Neptune Energy for $280m was scrapped in March 2020.