Business

Energean Ends Sale of Egypt, Italy and Croatia Assets

Energean, the London Stock Exchange (LSE) listed company, has terminated the proposed sale of its oil and gas portfolio in Egypt, Italy and Croatia to the Washington-based Carlyle International Energy Partners.

The $945 million sale, which was announced in June last year, would have seen Carlyle use the proceeds to form a new Mediterranean-focused oil and gas company to focus on its gas fields in Israel and Morocco, which was to be chaired by british petroleum’s former CEO Tony Hayward.

Energean has announced on 29 August 2024 and 17 March 2025 that completion of the transaction was conditional upon customary regulatory approvals in Italy and Egypt together with antitrust approvals in Italy, Egypt and Common Market for Eastern and Southern Africa.

The transaction was also subject to such conditions being satisfied by a longstop date of 20 March 2025, as agreed upon by Energean and Carlyle.

As of the longstop date, certain regulatory approvals in Italy and Egypt were not obtained by Carlyle (or waived), in accordance with the terms of the binding Sale and Purchase Agreement (SPA) signed on 19 June 2024. Additionally, the company has not been able to reach an agreement with Carlyle to extend the longstop date beyond 20 March 2025.

Accordingly, the company has today terminated the SPA and will no longer proceed with the Transaction.

Energean will provide an update to the market in its May trading statement & operational update which will contain updated 2025 production and financial guidance for the Group perimeter (including Egypt, Italy and Croatia), a strategy update on the forward-plan opportunities for the Egypt, Italy and Croatia assets, the Group’s new dividend policy (as previous envisaged to be announced upon Transaction closing or termination).

Committed to Growth                        

Energean Chief Executive Mathios Rigas said that the decision was made in the best interests of all their stakeholders, including employees, investors, host governments, and partners. These groups rely on clarity of ownership and responsible stewardship to ensure the effective management of Energean’s vital oil and gas assets, and we remain fully committed to meeting these expectations.

“While I am disappointed that Carlyle was unable to obtain the necessary approvals in Italy and Egypt under the terms of the SPA, I want to reaffirm that this outcome does not change our strategic direction or our commitment to growth and shareholder returns. Energean remains a strong, diversified oil and gas company, and we are excited to continue building on our successes,” he said.

“Italy, Egypt and Croatia will remain core pillars of our operations, and we look forward to driving further investment, development, and value creation in all countries. Our commitment to the Mediterranean and the wider region is unwavering, and we will continue to expand our portfolio, support energy security, and deliver sustainable growth in the years ahead,” Rigas added.

Global Business Magazine

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