Energean to Sell Assets in Egypt, Italy, Croatia

Energean plc is selling its portfolio of gas-weighted exploration and production assets in Egypt, Italy, and Croatia to an entity controlled by Carlyle International Energy Partners for an enterprise value of up to $945 million, of which $820 million is firm.

The completion of the transaction is expected by the end of the year, subject to customary regulatory and antitrust approvals, Energean said in a news release. The economic effective date is December 21, 2023.

Carlyle will acquire a diversified portfolio of highly strategic gas-weighted assets with expected production equivalent to 47,000 barrels of oil per day and operations across Italy, Egypt, and Croatia, with well-advanced, large-scale developments in markets that are supportive of new gas development. The portfolio includes interests in Cassiopea, Italy’s largest gas field in terms of reserves, and Abu Qir, one of the largest gas-producing hubs in Egypt.

Carlyle said in a separate statement that it plans to leverage its track record and experience in successful carve outs of E&P assets, following previous investments in Neptune Energy, Assala Energy and SierraCol, to establish a standalone, leading E&P company in the Mediterranean, through organic growth initiatives and M&A. As part of the transaction, SierraCol Executive Chairman Tony Hayward will become chairman of the new company, focused on scaling its operations in the region.

Bob Maguire, Co-Head of Carlyle International Energy Partners, said, “We are delighted to acquire this portfolio of high-quality assets in Italy, Egypt and Croatia, countries that are actively encouraging new gas development, which we believe will play a central role in the energy transition. We look forward to supporting the transformation of these assets into a scalable E&P platform in the Mediterranean through the execution of near-term developments, unlocking organic growth opportunities, M&A, and accelerating the delivery of existing decarbonization plans.”

Mathios Rigas, Energean CEO, said, “Carlyle is the right custodian of this asset base and will create an excellent home for our colleagues. We wish them every success and look forward to watching their progress as we continue to develop and diversify our natural gas focused asset base.”

Hayward remarked, “This acquisition provides a strong platform to build a standalone regional champion in the Mediterranean, one of the fastest growing natural gas markets in the world.”

Moving forward, Energean said it will maintain and seek to grow its footprint in the Mediterranean and look beyond this to the wider Europe, Middle East and Africa (EMEA) region, particularly where there is long-term policy support for gas and displacement of coal . The company will also focus on creating a carbon storage hub in Greece and the wider Mediterranean region via its EnEarth subsidiary.

Rigas said, “This deal represents an exciting new chapter for Energean. Today we have realized a significant return on the investment made when we acquired this portfolio over four years ago. The transaction delivers on our strategy and Energean’s ability to maximize value for our shareholders. It maintains our highly disciplined approach to capital allocation, as demonstrated by the accretive transaction metrics, coupled with an anticipated special dividend.”

“Looking ahead, this transaction unlocks management capacity and financial flexibility to drive future growth. “Our focus will now be to create enhanced value from our Israel assets, and evaluate new opportunities that fit Energean’s key business drivers: paying a reliable dividend, deleveraging, growth, and our commitment to Net Zero,” he concluded.

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