Repsol and Wintershall Dea have closed a deal with Edison SPA to increase respective interests in the Reggane Nord natural gas project onshore Algeria.
Following Algerian regulatory approvals, Repsol increased its interest by 6.75% and Wintershall has increased its share by 4.5%.
In May 2022, Wintershall agreed to acquire Edison SPA’s 11.25% participating interest in the Reggane Nord natural gas project in Algeria as part of a plan to grow its participation in the country (OGJ Online, May 5, 2022).
In June 2022, Edison said Repsol exercised its joint operating agreement preemption right to a portion of the interest. Thus, Edison signed an amendment to the agreement to reflect the disposal of Edison’s stake in the Reggane Nord field (equal to 11.25%) in part to Repsol (6.75%) and in part to Wintershall Dea (4.50%).
The value of the transaction remained at an estimated $100 million, and all other terms and conditions were unchanged.
Reggane Nord production began in December 2017 and consists of 19 currently productive wells which provide about 2.8 billion cu m/year (bcmy) of gas sold entirely to Sonatrach in Algeria based on a long-term contract.
With the closure of the deal, Edison confirms its exit from oil and gas exploration and production activities, a process the company started in 2019.
The Groupement Reggane Nord, operator of the project, now consists of Sonatrach (40%), Repsol (36%), and Wintershall Dea (24%).
