Energean Buys Total's Stake in Offshore Greek Block

Mediterranean-focused producer Energean Oil and Gas has cut a deal to acquire French oil major Total's stake in Block 2, off the coast of western Greece, it said in a statement on February 27. Energean said the move gave it additional exploration opportunities in its core area with limited financial exposure. 

The deal will see Energean secure Total's 50% stake in the block and operatorship.  The other shareholders in Block 2 are Greece's Hellenic Petroleum with 25% and Italy's Edison E&P, also with 25%. Energean aims to close its $850mn acquisition of Edison in the first half of 2020, bringing its share in Block 2 to 75%. 

Energean's share of work obligation expenses comes to around €0.5mn ($0.55), and includes funding a 1,800-km 2D seismic campaign, which the company said would significantly de-risk the project.  Work to date at the site has identified a large, potential structure thought to be an analogue of the Edison-operated Vega oilfield off Italy. This structure straddles the Greek-Italian maritime border.