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Energean Announces Sale of Mediterranean Oil and Gas Assets to Carlyle for up to $945 Million

Energean, the Mediterranean-focused oil and gas producer, has entered into an agreement to sell its assets in Egypt, Italy, and Croatia to Carlyle Group for a sum potentially reaching $945 million. This strategic move aims to streamline Energean’s operations and enhance its financial flexibility.

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Transaction Details

Financial Terms: The deal includes a cash payment of $504 million, enabling Energean to distribute a special dividend of $200 million and fully repay a $450 million corporate bond.

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New Entity: Carlyle International Energy Partners will establish a new company to oversee the acquired assets, led by former BP CEO Tony Hayward. The entity will seek additional acquisitions in the Mediterranean region.

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Strategic Focus: Energean CEO Mathios Rigas highlighted that the sale allows the company to concentrate on its core gas production facility offshore Israel and expand its exploration activities in Morocco.

Financial Performance: Energean plans to redefine its dividend policy post-transaction completion, expected by year-end.

Production and Strategic Impact

Production Forecast: Energean anticipates production in Egypt to increase to 29,000-31,000 barrels of oil equivalent per day (boed) in 2024, up from approximately 25,000 boed.

Strategic Rationale: The acquisition consolidates Carlyle’s presence in the Mediterranean gas market, boasting a combined production capacity of 47,000 boed, including significant assets like Italy’s Cassiopea gas field and Egypt’s Abu Qir gas hub.

Future Outlook

Expansion Strategy: Carlyle aims to leverage the acquired assets to establish a prominent regional player in the Mediterranean, leveraging the area’s growing natural gas market.

Market Dynamics: Hayward emphasized the strategic fit of the acquisition, positioning the new entity as a leader in a rapidly expanding market for natural gas.

The transaction underscores Energean’s strategic shift towards optimizing its portfolio and enhancing shareholder value, while Carlyle seeks to capitalize on growth opportunities in the Mediterranean energy sector.

(Conversion rate: $1 = 83.5070 Indian rupees)

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