Energean announced that it has received a discount for its acquisition of the Edison E&P, paying only $284m, but after working capital, Energean expects to pay just $178m for the acquisition down from the initial $750m value of the deal, the company said in a Monday press release.
The Greek energy company will gain operations in Egypt, Italy, UK, Croatia and Malta with 226 million barrels of equivalent 2P reserves and 2C resources. While Edison will keep its assets in Algeria and Norway.
Energean explained that it expects to pay a contingent payment for its first gas production from Cassiopea if natural gas price is recovered.
In 2019, the Greek company has entered into a conditional sale and purchase agreement to acquire gas exploration for the oil and natural gas unit of the Italian energy group Edison in Egypt, Italy, Algeria, Croatia, and the North Sea off the coast of Britain, Norway, and Greece for $750m.
Both parties have agreed on several amendments to the deal after negotiations, including reducing the value of an acquisition by $466m to become $284m, but after working capital, Energean expects to pay just $178m for the acquisition.
In 2019, Egypt’s Minister of Petroleum and Mineral Resources, Tarek El-Molla, approved in principle to complete the acquisition of oil and natural gas units of the Italian energy group Edison in Egypt by Energean of Greece.
Energean negotiates a new price for Edison asset deal at $284m
