Energean, Edison revise North Sea, offshore Italy transaction terms

June 29, 2020
Energean has issued an update on its acquisition of Edison E&P.

Offshore staff

ATHENS, Greece – Energean has issued an update on its acquisition of Edison E&P.

Further to an announcement on May 19, the company has entered amended terms under which Edison’s Norwegian subsidiary will be excluded from the transaction.

The amount payable is now $284 million, compared to the original sum of $750 million (Edison’ onshore Algeria interests have also been excluded).

The UK North Sea subsidiaries, which includes 25% and 10% shares in the Glengorm and Isabella gas/condensate discoveries in the central North Sea, remain part of the transaction - last month, Neptune Energy withdrew an offer to acquire these and the Norwegian subsidiary.

Operator CNOOC Petroleum Europe plans a two-well appraisal campaign on Glengorm, which contains an estimated 250 MMboe. Drilling could start later this year.

Energean also expect Total and its partners to approve appraisal drilling on Isabella.

Finally, the company’s $100-million contingent payment for Edison’s Cassiopea field offshore southern Italy will now vary between $0 and $100 million, depending on future Italian gas prices when first gas production is achieved.