Edison and Energean executed the agreement signed on July 4, 2019 and subsequently amended in June 2020 due to the economic impact of the pandemic crisis and the change in the transaction perimeter, for the sale of Edison Exploration and Production S.p.A. (E&P) and its investments in the hydrocarbon (oil and natural gas) exploration and production sector.

This transaction is part of Edison's divestment plan from hydrocarbon exploration and production activities in order to focus on sustainable development, in line with the energy transition and national decarbonisation targets. Edison will invest in Italy in the short term the financial resources made available by the sale of these assets to support the development plan in the areas identified as strategic, which are generation from renewable sources and latest gas technology, services to final clients, energy efficiency services and sustainable mobility.

“It is an extremely significant milestone, a fundamental step to enhance our investments in the company's strategic development sectors, such as low carbon generation, energy efficiency services and sustainable mobility in line with the country's energy transition”, says Nicola Monti, CEO of Edison. ““I would like to thank Energean for the fruitful collaboration over these past months and to extend my sincere wishes to all colleagues, certain that they will be able to continue to demonstrate their skills and express their potential"”.

“Completion of our acquisition of Edison E&P marks a key milestone along our path to becoming the leading independent, gas-producer in the Mediterranean and significantly advances us towards our goal of delivering material free cash flows and shareholder returns in a sustainable way”, says Mathios Rigas, CEO of Energean.

The enterprise value of the transferred assets is 284 million USD and the benefit on Edison net financial position with the transaction is equal to around 230 million USD, in addition also to the net cash from operations generated between 1 January 2019 and closing by the disposed assets. The agreement provides for an additional consideration of up to 100 million USD subject to the commissioning of Cassiopea development gas project in Italy; that consideration will be determined on the basis of gas prices (PSV) recorded at the time of the commissioning of the field, which is expected in the first quarter of 2024. The buyer will also assume future decomissioning obligations.

The scope of the sale to Energean includes Edison Exploration and Production’s assets, mineral rights and equity investments in the hydrocarbons sector in Italy, Egypt, Greece, the UK and Croatia, comprising a portfolio of around 75 mineral leases corresponding to net entitlement production of 37,000 equivalent barrels per day as at June 30, 2020.

About Edison

Edison is a leading Italian and European operator in the supply, production and sale of electricity, in energy and environmental services. Founded over 135 years ago, Edison has contributed to the electrification and development of Italy. It now operates in Italy, Europe and the Mediterranean basin, employing 5,000 people. Edison’s electric power plants have a total capacity of 6.4 GW in Italy.

About Energean Oil & Gas plc

Energean is a London Premium Listed FTSE 250 and Tel Aviv Listed E&P company with operations offshore Israel, Greece and the Adriatic. In August 2017 the Company received Israeli Governmental approval for the FDP for its flagship Karish-Tanin gas development project, where it intends to use the only FPSO in the Eastern Mediterranean to produce first gas in 2021. Energean has already signed firm contracts for 5.0 Bcm/yr of gas sales into the Israeli domestic market. Future gas sales agreements will focus on both the growing Israeli domestic market and key export markets in the region.
Energean has nine exploration licences offshore Israel, and a 25-year exploitation licence for the Katakolo offshore block in Western Greece and additional exploration potential in its other licences in Western Greece and Montenegro.