(MENAFN - Daily News Egypt) The Minister of Petroleum and Mineral Resources, Tarek El-Molla, approved in principle to complete the acquisition of oil and natural gas units of the Italian energy group Edison in Egypt by Energean of Greece.
An official source in the oil sector told the Daily News Egypt that Energean of Greece competed with RWE, Neptune, and Cairn Energy for the acquisition of oil and natural gas units of the Italian energy group Edison in Egypt, Italy, Algeria, Croatia, and the North Sea off the coast of Britain, Norway, and Greece.
He added that the acquisition was made after Edison announced the offer of its concession areas of oil and natural gas for sale, and Energean's desire to expand it's gas exploration operations in the Mediterranean region.
The source explained that the Greek company is committed to the exploration and production plan agreed upon with the ministry of petroleum in Edison's concession areas in Egypt upon completion of the acquisition by the fourth quarter of 2019.
Energean has acquired gas exploration for the oil and natural gas unit of the Italian energy group Edison in Egypt, Italy, Algeria, Croatia, and the North Sea off the coast of Britain, Norway, and Greece for $750m.
Energean said that with the production of gas from the Cassiopea field off the coast of Italy by 2022, the company expects to produce $100m for Edison Italy, and the total production of Energean after the acquisition will reach more than 140,000 barrels of oil equivalent per day 2021, with the launch of the Karish and Tanin projects.
"The Edison deal puts Energean as a leading, independent, gas-focused company in the Mediterranean region primarily through a range of low-cost projects," said Mathios Rigas, CEO of Energean.
The deal will make Energean a multi-country, multi-asset company, with extensive cash flow that will significantly contribute to Energean's portfolio diversification, he added.