Algeria has definitely been excluded from Energean's pending acquisition of Edison E&P.
The Greek oil and gas company in July last year agreed to buy Italy-based Edison's oil and gas subsidiary Edison Exploration & Production for an initial consideration of $750 million.
Edison E&P’s portfolio of assets includes producing assets in Egypt, Italy, Algeria, the UK North Sea and Croatia, development assets in Egypt, Italy and Norway.
However, Energean said in December that the deal might be amended so that Edison’s Algeria assets won’t be included after an intervention from the Algerian authorities.
In a trading update on Wednesday, Energean confirmed the exclusion of the Algerian assets from the proposed acquisition.
"The acquisition is now expected to exclude the Algerian Asset," Energean said.
"Energean will provide an update on the settlement to the total transaction consideration once this has been agreed," the company said, adding that it does not expect the exclusion of the Algerian Asset to negatively affect its ability to close the transaction on the remainder of the assets.
"Energean is working actively to close its Acquisition of Edison E&P as soon as possible, with approval from Italy anticipated shortly. Formal approvals from Egypt are expected soon after EGM approval," Energean said.
Average working interest production from the Edison E&P portfolio during 2019 was 64.2 kboed, of which Algeria contributed 5.2 kboed.
As previously reported, Energean in October last year agreed to sell Edison E&P North Sea assets to Neptune Energy Group for up to $280 million.
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