Energean sells Italy, Egypt, Croatia assets to Carlyle for up to $945m

Energean sells Italy, Egypt, Croatia assets to Carlyle for up to $945m

Global investment firm Carlyle has bought a portfolio of gas-weighted exploration and production assets in Italy, Egypt, and Croatia from London-based oil and gas player Energean.

This transaction will deliver to Carlyle a diversified portfolio of highly strategic gas-weighted assets with expected production equivalent to 47,000 barrels of oil per day and operations across the Mediterranean. The portfolio includes interests in Cassiopea, Italy’s largest gas field regarding reserves, and Abu Qir, one of Egypt’s largest gas-producing hubs.

Carlyle will leverage its track record and experience in successful carve-outs of E&P assets, following previous investments in Neptune Energy, Assala Energy, and SierraCol, to establish a standalone E&P company in the Mediterranean.

As part of the transaction, Tony Hayward – the former CEO of BP and current executive chairman of SierraCol – will become chairman of the company, focused on scaling its operations in the region.

Carlyle International Energy Partners, a private equity fund that invests in energy opportunities in Europe, Africa, Latin America, and Asia, will buy Energean’s assets for an enterprise value of up to $945m of which $820m is firm. Completion is expected by year-end 2024.

“We look forward to supporting the transformation of these assets into a scalable E&P platform in the Mediterranean through the execution of near-term developments, unlocking organic growth opportunities, M&A, and accelerating the delivery of existing decarbonisation plans,” said Bob Maguire, co-head of Carlyle International Energy Partners.

“This acquisition provides a strong platform to build a standalone regional champion in the Mediterranean, one of the world’s fastest-growing natural gas markets,” added Tony Hayward, chairman designate of the newly created company.

Published: 21-06-2024