Energean, Edison Tweak Deal

Mediterranean-focused Energean has agreed revised terms for the takeover of the upstream business of Italy's Edison, it said on April 3, excluding the latter's Algerian assets from the deal.

Energean entered an agreement to buy Edison E&P for $750mn in July, a move aimed at expanding its mostly gas-based portfolio in the Mediterranean area. Edison E&P has assets in Algeria, Croatia, Egypt, Norway and the UK. Energean went on to cut a deal to sell Edison's North Sea business to UK-based Neptune Energy for $280mn.

The exclusion of Edison's Algerian assets from in the acquisition will reduce its value by $150mn, Energean said in a London stock exchange filing. Earlier Energean said it was working with Edison to overcome difficulties getting consents for the transaction from Algerian authorities.

Energean said it was aiming to close the takeover as soon as possible, subject to shareholder and government approvals. After completing the deal it will focus on closing the North Sea sale to Neptune.

The company also reported on April 3 that the hull of the floating production storage and offloading unit it plans to use at the Karish gas field off Israel had sailed away from the Cosco shipyard in China. It will now be towed to the Sembcorp Marine Admiralty yard in Singapore where its topsides will be fitted.

The Karish project is on track to flow its first gas in the first half of 2021.