Energean to Sell Mediterranean Oil and Gas Assets to Carlyle for $945 Million
Energean has agreed to sell its assets in Egypt, Italy and Croatia to private equity firm Carlyle for $945 million.
The press service of the oil and gas company Energean reported this on June 20, 2024.
The deal will include a cash payment of US$504 million, which will allow the London Stock Exchange-listed company to pay a special dividend of US$200 million, as well as fully repay US$450 million of corporate bonds.
Energean shares rose more than 3% following the announcement.
Carlyle International Energy Partners (CIEP), the fund’s non-US energy investment arm, said it would spin off assets into a new company that will seek further acquisitions in the Mediterranean and will be led by former BP CEO T. Hayward.
Investec analyst A. Smith:
- The sale allows Energean to rationalize its portfolio and focus on its gas development strategy, which is anchored by the Karish field in Israel and the recent acquisition of an interest in the Anchois field in Morocco.
Theses from Energean General Director M. Rigas:
- Energean will also seek expansion in Europe, the Middle East and Africa, particularly where there is long-term political support for gas and coal substitution;
- This is a profitable deal for us; we are selling assets at 3 times the price we bought them for.
However, Jefferies analysts estimate the net value of the assets Energean is selling at $1.28 billion, implying a 26% discount on the deal.
Energean’s board of directors expects to review its dividend policy following completion of the transaction, which is expected by the end of 2024. Energean produced 123 thousand boe/d in 2023. In 2024, production in Egypt is expected to increase to 29-31 thousand boe/d from approximately 25 thousand boe/d. Energean acquired assets in Egypt, Italy and Croatia through its acquisition of Edison’s oil and gas portfolio in 2020.
CIEP said the deal would create a company with a production capacity of 47,000 b/d, including interests in Cassiopeia, Italy’s largest gas field by reserves, and Abu Qir, one of Egypt’s largest gas production centers.
The acquisition creates a strong platform to create an independent regional leader in the Mediterranean, one of the fastest growing natural gas markets in the world, Hayward said in a statement.
Energean previously:
- On February 29, 2024, it became known that Energean received the first gas from the Karish North field, located on the Israeli continental shelf,
- Energean began production from the Karish field in October 2022, after Energean Power’s FPSO crossed the Suez Canal in June 2022, the first vessel of its type to do so, and reached waters offshore Israel.
- In January 2023, Energean stated that its key development projects – Karish North, NEA/NI, Cassiopea – will allow it to achieve a medium-term production target of 200 thousand boe/d.
- In this regard, by the end of 2023, the installation of the 2nd string of the oil pipeline and the 2nd riser for gas export was expected to connect the wells of the Karish North field.
