Energean’s North Sea ‘sell on’ deal with Neptune is cancelled
Energean Oil and Gas Plc’s (LON:ENOG) ‘sell-on’ deal with Neptune Energy for North Sea assets has been terminated.
Neptune will pay a US$5mln termination fee to Energean.
The envisaged transaction saw Energean quickly move on the North Sea assets that is it set to acquire in its deal with Edison E&P.
Energean, meanwhile, said it remains committed to the Edison deal albeit the partners have entered talks to re-structure the transaction.
The London-listed firm added that Edison’s Norwegian North Sea assets may be excluded from the deal whilst the UK subsidiaries could be retained.
This would mean Energean will hold a 25% stake in the Glengorm asset, described as the largest gas condensate discovery in the Central North Sea for a decade, and, a 10% stake in the Isabella discovery.
Back in July, Energean struck what was initially an US$850mln deal, with US$750mln upfront, to buy Edison E&P – delivering to Energean interests in assets across Egypt, Italy, Algeria, the UK, Norway and Croatia.
Shortly thereafter it separately agreed a US$280mln sell-on transaction with Neptune include stakes in the Nova and Dvalin gas development projects in Norway plus a 10.5% interest in the producing Scott field offshore UK along with stakes in the Tors, Wenlock, and Markam assets, Glengorm and Isabella projects.
The Edison transaction was subsequently amended to exclude Algeria.
Today, as restructure talks resume, the London-listed firm said: “Energean will update the market if, and when, such formal amendment to the SPA is concluded with Edison, noting that there can be no certainty that an agreement on such terms can be reached.”