Energean to sell Edison's North Sea Assets for $250MM
Energean Oil and Gas plc plans to sell Edison E&P’s UK and Norwegian subsidiaries to Neptune Energy Group Holdings Ltd. for $250 million cash, with additional cash contingent consideration of up to $30 million. The sale is contingent on Energean completing its proposal to acquire Edison E&P.
The deal follows Energean’s strategy of becoming the largest independent gas-focused E&P in the Mediterranean, and its previously stated plan to sell non-core assets.
The Edison E&P UK and Norway subsidiaries represent $408 million of 2018 gross assets. The subsidiaries include:
- the Nova (15 percent working interest) and Dvalin (10 percent WI) gas developments offshore Norway, and in the UK;
- the producing Scott (10.5 percent WI), Telford (15.7 percent WI), Tors (68 percent WI) and Wenlock (80 percent WI) fields;
- the Markham asset (3.1 percent WI);
- the Glengorm discovery (25 percent WI);
- and the Isabella license (10 percent WI), upon which an exploration well is expected to spud in the next few weeks.
Neptune will take on the Edison UK and Norway employees and has agreed to guarantee their terms of employment/severance pay for 18 months from completion.
“The acquisition of Edison E&P established Energean as the leading independent, gas-focused E&P company in the Mediterranean with a mainly-operated, low-cost, gas-weighted portfolio and a highly experienced team to prosper in our rapidly changing industry,” Mathios Rigas, Energean CEO, said in a press statement.
“Neptune is a leading player in the UK and Norway upstream sectors and, as such, we are convinced that under Neptune’s ownership, Edison E&P’s UK and Norway teams will benefit from the increased focus and investment that will result from this strategic alignment.”
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Vice President of Content | Rigzone