Energean Oil and Gas PLC is in discussions with Edison SPA to amend the 2019 purchase agreement to exclude Edison E&P’s Norwegian subsidiary from the deal following the decision by Neptune Energy to terminate its agreement with Energean to acquire Edison E&P’s UK and Norwegian subsidiaries.
In July 2019, Energean reported a conditional acquisition of Edison E&P for $750 million plus $100 million of contingent consideration) (OGJ Online, July 8, 2019). Subsequently, Neptune agreed to buy Edison E&P’s upstream assets offshore the UK and Norway from for $250 million.
For the termination, Neptune will pay a $5 million fee to Energean.
If an amendment agreement is reached between Energean and Edison, Energean would retain the UK subsidiaries which include a 25% working and economic interest in the 250 MMboe (gross) Glengorm gas and condensate discovery in the central North Sea, and a 10% interest in the Total SA-operated Isabella discovery announced in March (OGJ Online, Mar. 17, 2020). Algerian assets remain excluded from any amended agreement, as reported in in April (OGJ Online, Apr. 3, 2020).