The Italian energy company “Edison” drew an exception for its assets in Algeria with gas fields in the Berkane region, from a acquisition for the Greek company “Energean” listed on the Tel Aviv Stock Exchange, which has close ties to the Zionist entity, and this after an Algerian categorical refusal to complete the deal through the Ministry of Energy.
In a context, it was stated in a statement by the Italian Energy Edison on Monday, of which “Echorouk” got a copy that the company’s assets for exploration and production in Algeria will remain affiliated with the company until the market conditions allow for a better evaluation of them, indicating that ending the sale of the exploration and production branch in favor of “Energean” will be made this year, without providing a specific date.
The same statement stated that, according to the contract to sell Edison to its branch of research and exploration and its investments in this sector (oil and natural gas), for the benefit of “Energian” company, a review contract for the sale agreement that was previously signed on 4 July 2019, excluding the assets of Addison in Algeria and Norway.
The statement pointed out that this amendment to the agreement to sell Edison’s Exploration and Production Branch to exclude its assets in Algeria was due to the lack of permission from the Algerian Ministry of Energy to complete the deal.
The statement pointed out that “Edison” is determined to move forward with its new strategy based on the gradual exit from the research and exploration sector in the traditional fuels, and focus on developing renewable energies.
According to the same sources related to the file, the response of the Algerian authorities refusing to complete the deal is clear and due to the fact that the Greek company that would have acquired Edison’s assets in gas fields in the Reggane region in southern Adrar province, is listed on the Tel Aviv Stock Exchange and has very strong ties with the Zionist entity.
According to the information held by “Echorouk”, the Algerian refusal to acquire a company listed on the Tel Aviv Stock Exchange on gas assets in the region of Reggane, found legal cover through the new text of the hydrocarbon law, which gives the Algerian authorities the right to object to the sale or transfer of ownership through the right of pre-emption .
From the statement of the Italian company, it is understood that its assets in Algeria will remain on sale, but after a new evaluation process as long as market conditions permit, this means that buyers’ offers will be carefully studied before agreeing to a future deal, especially regarding the customer who is satisfied with the Algerian authorities.
As a recall, Italian energy giant Edison has recently announced the signing of a sale and purchase agreement with Energean Oil and Gas to sell the 100% of Edison Exploration and Production (E&P) and its subsidiaries in the hydrocarbons exploration and production business (oil and natural gas). The Edison Board of Directors approved the transaction late last year.
The price of the transaction is based on an enterprise value of USD 750 million, with an additional consideration of USD 100 million contingent on the commissioning of Cassiopea development gas project in Italy.
Additionally, Edison will be entitled to royalties associated with further potential developments in Egypt that would bring the aggregate value close to USD 1 billion. The transaction also includes the transferring to the buyer of all Edison future decommissioning obligations.
Following the transaction, considering the first half 2019 developments, in particular in terms of regulations as well as brent and gas market trends, and the contractual terms currently being finalized, a 400-500 million euros writedown at Group level is expected.