Energean plc, a British oil and gas company, has agreed to sell its assets in Egypt, Italy, and Croatia to a Carlyle investment fund for up to $945 million. This strategic move aims to concentrate on its gas projects in Israel and Morocco, leveraging the Karish field in Israel and the Anchois field in Morocco.
The sale, expected to be completed by the end of 2024 pending regulatory approval, will generate a significant return on investment. Energean invested $284 million in the three countries last year and expects a more than triple payback. The proceeds will be utilized to settle the company’s $450 million debt and distribute a special dividend of up to $200 million to shareholders. Additionally, Energean anticipates annual savings of at least $7.5 million on administrative costs.
This divestment is part of Energean’s strategy to optimize its portfolio, maximize asset value, and increase cash flow. The company is committed to achieving climate neutrality and will now focus on its Israeli assets while exploring new opportunities that align with its core drivers.
According to CEO Matjios Rigas, this transaction will free up management capacity and financial flexibility, enabling the company to drive future growth and focus on its primary objectives.
