Agreement to sell its portfolio in Egypt, Italy and Croatia to Carlyle International Energy Partners announced today Energeanfor a price of up to $945 million and no less than $820 million.

The price according to Energean is more than three times the cost of acquiring the specific assets from Edison which was $284 million in 2020.

The agreement as indicated creates sufficient cash liquidity for Energean to fully repay the $450 million Corporate Bond and to facilitate the payment of an extraordinary dividend of up to $200 million to shareholders. It also allows Energean to focus on its natural gas-based development strategy, which is signaled by the development of the Karish and Karish North fields in Israel as well as the recent entry into the Anchois field in Morocco.

“Going forward, Energean will seek to grow further in the Mediterranean but also look for opportunities in Europe, the Middle East and Africa, especially in areas where there is a long-term support policy for natural gas and to replace coal. The group will also focus on the creation of a carbon dioxide storage hub in Greece and the wider Mediterranean region through the subsidiary EnEarth,” the announcement states.

On the occasion of the agreement, Mr. Mathios Rigas, CEO of the Energean group, said:

“This agreement opens an impressive new chapter for Energean. Today, we are capitalizing on a significant return on the investment we made when we acquired this portfolio four years ago. The transfer leverages our strategy to maximize value for our shareholders and confirms the absolutely disciplined logic in the placement of capital, as evidenced by the parameters of the deal combined with the expected distribution of an extraordinary dividend.

Looking ahead, the deal unlocks significant management capacity and provides financial flexibility to drive future growth. Our focus will now be on creating enhanced value from our Israel portfolio, as well as evaluating new opportunities that fit with Energean’s business philosophy: growth, reliable dividend payment, debt reduction and commitment to Net Zero.

“Carlyle is the right custodian of the transferred assets and will be an excellent home for our colleagues, whom we wish every success and whose progress we will follow. I want to personally thank all colleagues in Egypt, Italy and Croatia for their hard work and dedication all these years.”

For his part, Bob Maguire, head of Carlyle International Energy Partners, commented on this:

“We are particularly pleased to acquire this portfolio of high-quality assets in Italy, Egypt and Croatia, countries that are 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 growing platform for hydrocarbon exploration and exploitation in the Mediterranean, through the implementation of short-term developments, the unlocking of organic growth opportunities, acquisitions and mergers, as well as the completion of planned decarbonisation plans.”