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Tuesday, 9 July 2019

Egypt approves Energean’s takeover of Edison’s oil and gas assets in Egypt

M&A WATCH- Oil Ministry approves Energean’s acquisition of Edison’s Egypt oil and gas assets: Oil Minister Tarek El Molla has given his preliminary approval to Energean’s takeover of Edison’s Egypt oil and gas assets, the local press reported, citing an unidentified industry source. The Greek energy company will remain committed to the exploration and production plan agreed between Edison and the ministry, the source said.

Background: Energean is set to buy Edison’s entire oil and gas portfolio for an initial USD 750 mn, with a further USD 100 mn due after gas production from the offshore Italian Cassiopeia field begins, which is expected to happen in 2022. Edison’s Egypt portfolio are a core part of its oil and gas unit and make up 24% of the company’s portfolio. They include three producing concessions and six exploration concessions. Of the production assets, it owns a 100% stake in Abu Qir, a 60% stake in West Wadi El Rayan and a 20% stake in Rosetta. It also has a 100% stake in three exploration assets, and shares ownership of the remaining three with state-owned companies EGAS and EGPC. These assets are expected to produce an average 50k boe/d this year.

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