19th May 2020 09:44
(Alliance News) - Energean Oil & Gas PLC on Tuesday said its deal with Neptune Energy Group Holdings Ltd has been terminated, with Neptune agreeing to pay a USD5 million termination fee.
Energean is an oil and gas producer focused on the Mediterranean and in July 2019 agreed to buy Italian electricity and gas company Edison E&P SpA for USD850 million.
Then, at the start of April 2020, the group confirmed it would exclude Edison's Algerian assets from the deal and consequently the total deal consideration would be adjusted by around USD150 million.
The firm had agreed to sell its UK and Norwegian subsidiaries to Neptune as part of the acquisition, a deal which "had been contingent on the closing of Energean's acquisition of Edison E&P".
Energean said it "remains committed to its acquisition of Edison E&P, and is working to complete the transaction as soon as possible."
In a separate Tuesday announcement, Energean said it is in talks with Edison to amend its sale and purchase agreement again to exclude the Norwegian Edison E&P subsidiary from the deal.
Energean would keep the UK subsidiaries, including a 25% working interest in the Glengorm discover in the Central North Sea and a 10% interest in the Isabella discovery located offshore, 170 kilometres east of Aberdeen.
Shares in Energean were down 2.5% at 575.35 pence in London on Tuesday morning.
Neptune has said it will continue pursuing its global development projects pipeline, as well as "other growth opportunities".
By Anna Farley; [email protected]
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