Energean to Buy Edison's Oil and Gas Unit

Thursday, July 4, 2019

Israel-focused gas driller Energean said on Thursday it will buy Italian energy group Edison's oil and natural gas unit for an initial consideration of $750 million.

The acquisition would significantly expand Energean's operations in the growing eastern Mediterranean gas hub, with a significant presence in Egypt's offshore basin.

Energean said it will likely pay an additional $100 million after gas production from the Cassiopea field in offshore Italy begins, which is expected in 2022.

Reuters reported on Wednesday that Energean was the frontrunner to acquire these assets.

Energean expects the expanded group to produce over 140 kilobarrels of oil equivalent per day (kboed/d) in 2021 when the Karish and Tanin development projects come onstream.

The London-listed driller said Edison's portfolio, which includes assets in Italy, Algeria, Croatia, the British and Norwegian North Sea as well as Greece, adds net working interest production of 69 kboed/d.

Energean said it will finance the initial consideration for the deal through a short-term loan facility of $600 million and up to $265 million through equity financing.


(Reporting by Tanishaa Nadkar and Shariq Khan in Bengaluru; Editing by Arun Koyyur)

Categories: Energy Mergers & Acquisitions Middle East Industry News Europe

Related Stories

TWMA Takes Multi-Million-Dollar North Sea Drilling Services Job

Ithaca Energy Buys Suncor Energy’s Canadian Oil Assets for $860M

Big Oil Faces Strategy Rethink as Iran War Reshapes Energy Markets

Current News

Sumitomo Corporation Global Metals, TFI Marine Introduce Mooring Solutions to Floating Offshore Wind

FET Appoints Amariko as Dynacon Representative in Japan

Chevron Joins SLB, TotalEnergies Digital Subsurface Collaboration

Normand Maximus CSV Set for $125M Ownership Transfer

Subscribe for OE Digital E‑News