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Energean bids farewell to Egypt, Italy and Croatia as assets fetch $945 million

London-based oil and gas player Energean has initiated the divestment of its portfolio in Egypt, Italy and Croatia for an enterprise value (EV) of up to $945 million, of which $820 million is fixed. This will enable the company to pursue gas-weighted portfolio growth in the Mediterranean and the wider Europe, Middle East and Africa (EMEA) region.

FPSO Energean Power is working on the Karish field off the coast of Israel; Source: Energean

Thanks to a binding agreement for the sale of its portfolio in Egypt, Italy and Croatia to an entity controlled by Carlyle International Energy PartnersEnergean will realize a more than triple return on investment since the portfolio was acquired for $284 million in 2020. Completion of the transaction is expected by the end of 2024, subject to customary regulatory and antitrust approvals.

Mathios RigasChief Executive Officer of Energean, commented: “This deal represents an exciting new chapter for Energean. Today we have achieved a significant return on the investment we made when we acquired this portfolio over four years ago. The transaction is a continuation of our strategy and Energean’s ability to maximize value for our shareholders. It maintains our highly disciplined approach to capital allocation, as evidenced by positive transaction numbers, coupled with an expected special dividend.”

With the sale eliminating more than 60% of its decommissioning liabilities and improving free cash flow in the short to medium term, the UK-headquartered player plans to rationalize its portfolio and focus on its gas-weighted gas development strategy, supported by the Karish field in Israel and its recent embedding in the Anchois field in Morocco.

Bob Maguireco-head of Carlyle, noted: “We are very pleased to acquire this portfolio of high-quality assets in Italy, Egypt and Croatia, countries that are actively driving the development of new gas and which we believe will play a central role in the energy transition.

“We look forward to supporting the transformation of these assets into a scalable E&P platform in the Mediterranean, by executing short-term developments, unlocking organic growth opportunities, mergers and acquisitions and accelerating the execution of existing plans for a low-carbon economy.”

Furthermore, Energean is committed to maintaining and growing its footprint in the Mediterranean, while also looking further into the wider EMEA region, especially where there is long-term policy support for gas and coal relocation. In addition, the company will focus on creating a carbon storage center in Greece and the wider Mediterranean region AndEarth subsidiary.

Following the divestiture of assets in Egypt, Italy and Croatia, the company’s Scope 1 and 2 emissions intensity is expected to decline by approximately 40% to approximately 5 kg CO2e/boe, achieving the company’s 2035 target of 4-6 kg CO2e/boe is accelerated. boo with ten years. Since the economic effective date of the transaction is December 31, 2023, attributable gross assets at the time were $1.67 billion, while total liabilities were $1.27 billion, of which $516 million was a decommissioning provision.

“Looking ahead, this transaction unlocks management capacity and financial flexibility to drive future growth. Our focus will now be on creating more value from our assets in Israel, and on evaluating new opportunities that align with Energean’s key business drivers: paying a reliable dividend, deleveraging, growth and our strive for net zero.” Rigas emphasized.

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