Algeria Rejects Greek-Owned Energean Oil & Gas

Algeria permanently cut off the way to a Greek company listed on the Zionist Entity’s Stock Exchange in Tel Aviv, which had a previous initial agreement with the Italian “Edison” to acquire the assets of the Italian partner in the “North Reggane” gas fields, and the deal was ultimately settled on the Spanish “Repsol” and the German “Wintershall Dea”.

In this context, a statement by the Italian energy company “Edison”, on Friday evening -a copy was checked out by Echorouk- said that following the approval of the Algerian authorities via a decree published in the Official Gazette on October 12, 2023, relating to the agreements signed on May 4 and June 29, 2022, “Edison” announced that the transfer of the 11.25% stake it owned in the “North Reggane” gas project has become effective to “Repsol” (Spanish) by 6.75% and to “Wintershall Dea” by 4.50%”.

The statement added that the value of the deal remained as previously reported and was equivalent to about 100 million US dollars, as of the reference date for its registration on January 1, 2022.

The Italian Edison company’s abandonment of its stake in this project came as part of a comprehensive plan for the energy transition and the shift from research and exploration in traditional energies (oil and gas) to securing energy supplies for the Italian market through announced investments exceeding 10 billion euros between 2023 and 2030.

As is known, the North Reggane gas field is managed according to a partnership between the National Hydrocarbons Company “Sonatrach” with a 40% share, the Italian “Edison” 11.25%, the Spanish “Repsol” 24.75% and the German “Wintershall Dea” 24%, and according to this deal, Repsol’s share will move to 31.5% and 28.5% to “Wintershall Dea.”

Previously, the Italian company “Edison” had temporarily suspended the sale of its shares in the “North Reggane” gas fields in the south of the country, in favour of the “Energean Oil and Gas” company due to the refusal of the Algerian authorities and “Sonatrach” to complete the deal, given that the Greek company has close relations with Israel and is listed on Tel Aviv Stock Exchange since October 2018.

The Italian “Edison” indicated, at the time (April 2020), that the Board of Directors approved some amendments and reviews to the agreement to sell 100% of its subsidiary for hydrocarbon exploration and production, to the Greek “Energean Oil and Gas” company, according to the deal announced on July 4 and later on December 23, 2019, indicating that the deal with the Greek company will officially exclude its assets for hydrocarbon exploration and production in Algeria (Reggane North fields).

The Italian company explained at that time that, under the provisions of the Algerian authorities and in agreement with Sonatrach, Edison decided to retain ownership of its assets in Algeria by initiating a transfer process within the group, and thus, excluding it from the deal to transfer it to Energean Oil and Gas, noting that it is possible to consider selling these assets located in Algeria, after the transfer process within the group and when market conditions will allow it.

As is known, the National Hydrocarbons Company SONATRACH is authorized by the new Hydrocarbons Law to exercise the right of first refusal concerning transferring the shares of foreign companies in oil and gas fields to other companies, and it can exercise this within a period that does not exceed 60 days from the date of its notification by the Hydrocarbon Resources Valuation Agency ALNAFT with a request of assets’ transfer.