Energean strikes $750 million deal for oil and gas assets

Energean Oil & Gas will take on ownership of a range of assets in the Mediterranean, North Sea and Europe after acquiring EDF’s oil exploration arm in a US$750 million deal.

The acquisition of Italian energy company Edison E&P will add the gas equivalent of 292 million barrels of reserves and a net 2018 working interest production of 69,000 barrels of oil equivalent per day (boepd) to Energean’s portfolio.

The Israel-based firm’s chief executive Mathios Rigas said the deal establishes Energean as the leading independent, gas-focused E&P company in the Mediterranean.

“It will diversify Energean into a multi-country, multi-asset, full-cycle E&P company with scale, material cash flows, significant growth and portfolio optionality,” he said.

Energean’s portfolio now encompasses 64 million boepd of reserves and the company expects the expanded group to produce over 140,000 boepd in 2021, rising to 200,000 boepd when the offshore Karish and Tanin fields in Israel reach full capacity.

The FTSE 250 firm listed in London in March 2018 with a valuation just short of £700 million and after a rapid rise, the company is now worth £1.29 billion.