Edison Spa has announced the signing of the agreement with Energean Oil and Gas to sell 100% of Edison Exploration and Production (Edison E&P) and its subsidiaries in the hydrocarbons exploration and production business.
The signing follows the approval of the transaction by the Edison Board of Directors on July 3, 2019.
The price of the transaction is based on an enterprise value of USD 750 million, with an additional consideration of USD 100 million contingent on the commissioning of the Cassiopea development gas project in Italy. Additionally, Edison will be entitled to royalties associated with further potential developments in Egypt, and this would bring the aggregate value close to USD 1 billion. The transaction also includes the transfer of all Edison future decommissioning obligations to the buyer.
Edison E&P manages all of Edison’s activities within the hydrocarbons business in Italy and abroad, including mining titles and corporate shareholdings. Edison E&P owns a portfolio of approximately 90 licences in 9 countries in the Mediterranean and in Northern Europe, corresponding to approximately 49,000 barrels per day of net production (December 31, 2018).
Energean Oil & Gas has committed to guarantee the future development of the E&P business area and its employees, being the ideal operator to unleash all the potential of the business.
Edison E&P have 282 employees (June 30, 2019). In addition Edison E&P has employees working for the Egyptian Operating Company; Abu Qir Petroleum (AQP). With regard to the acquired personnel, Energean Oil and Gas is committed to ensuring certain protections, taking into account the specific regulatory conditions governing the employment rules and the existing market practices in the various countries.
The closing of the transaction with Energean Oil and Gas is expected to take place by the end of 2019. This is contingent on approval from authorities in each country of operation
The financial capital coming from this transaction will support Edison S.p.A's strategic development plan, which envisages very significant investments in Italy in the three-year period from 2019-2021. The plan is mainly intended for sustainable production from renewable sources and gas, and in addition it will strengthen the Company’s activities in the retail market and it's energy efficiency services.
Extract from press release made by Edison Press Office regarding the sale of Edison Exploration & Production, of which Edison Norge is part of and as such included in the transaction. The closing is dependent on certain conditions including authority approvals. In the interim period we will honour our commitments and follow normal business practice for our engagement in Norway.
Edison S.p.A. press release
Energean Oil & Gas web site