Energean Oil and Gas and Edison have agreed to exclude Edison E&P’s Algeria assets from the previously agreed acquisition.
As previously reported, Energean entered into a conditional sale and purchase agreement (SPA) on July 4, 2019, to acquire Edison E&P from Edison for an initial consideration of $750 million, with the completion of the SPA being subject to relevant government approvals.
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 and balanced-risk exploration opportunities across the portfolio.
Energean and Edison were working together to overcome certain difficulties encountered in obtaining the consent of the Algerian authorities in respect of the Edison E&P assets located in Algeria.
In parallel, Energean and Edison were considering an amendment to the SPA to record an appropriate settlement on the total transaction consideration, should the Algerian assets not be acquired by Energean.
According to Energean’s update on Friday, Energean and Edison have entered into a formal amendment to the SPA on April 2, 2020, in which the Algerian assets will be excluded from the scope of the acquisition.
In recognition of the exclusion of the Algerian assets, there will be an adjustment to the total consideration of the acquisition of approximately $150 million.
Energean said it is working to complete the acquisition of Edison E&P as soon as possible in 2020, subject to the approval of its shareholders and the other relevant governments.
Thereafter, completion of Energean’s agreement for the sale of Edison E&P’s UK and Norwegian subsidiaries to Neptune for a consideration of $250 million plus contingent consideration of up to $30 million, will be completed as soon as reasonably practicable.
In related news, Energean also said on Friday that the hull for its Energean Power FPSO had left a Chinese yard heading to Singapore for final topsides integration.