Sale of oil & gas assets with $945 million price tag falls through

London-based oil and gas player Energean has severed the divestment cord for its asset portfolio in Egypt, Italy, and Croatia, worth $945 million, as key regulatory pieces to complete the sale puzzle did not arrive within the agreed timeline. As a result, this sale deal, envisioned to spur the greater pursuit of gas-weighted portfolio growth in the Mediterranean and the wider Europe, Middle East, and Africa (EMEA) region, has come to naught.

The firm revealed a binding agreement in June 2024 with an entity controlled by Carlyle International Energy Partners for the disposal of its portfolio in Egypt, Italy, and Croatia, entailing an enterprise value (EV) of up to $945 million, of which $820 million was firm.

The sale of these assets was designed to enable Energean to realize more than a threefold return on investment since the portfolio was acquired for $284 million in 2020. While the completion of the transaction was expected by the end of 2024, it was still subject to customary regulatory and antitrust approvals.

Therefore, the completion of the transaction was conditional upon customary regulatory approvals in Italy and Egypt, together with antitrust approvals in Italy, Egypt, and Common Market for Eastern and Southern Africa.

As certain regulatory approvals in Italy and Egypt were not obtained by Carlyle or waived, the company disclosed on March 17, 2025, that it had no assurance such conditions would be satisfied on or before the longstop date of March 20, 2025, per the terms of the binding sale and purchase agreement (SPA).

In an update on March 21, Energean confirmed the termination of the sale since certain regulatory approvals in Italy and Egypt were not obtained by Carlyle or waived by the longstop date, and the firm was unable to reach an agreement with Carlyle to extend the longstop date beyond March 20, 2025.

Mathios Rigas, Chief Executive of Energean, commented: “Today, we are announcing the termination of our transaction with Carlyle. This decision was made in the best interests of all our stakeholders, including our employees, investors, host governments, and partners. These groups rely on clarity of ownership and responsible stewardship to ensure the effective management of our vital oil and gas assets, and we remain fully committed to meeting these expectations.

“While I am disappointed that Carlyle was unable to obtain the necessary approvals in Italy and Egypt under the terms of the SPA, I want to reaffirm that this outcome does not change our strategic direction or our commitment to growth and shareholder returns. Energean remains a strong, diversified oil and gas company, and we are excited to continue building on our successes.”

As Energean took the initiative and terminated the sale and purchase agreement, it will no longer proceed with this transaction. The company will provide its updated 2025 production and financial guidance for its portfolio, including assets in Egypt, Italy, and Croatia, alongside a strategy update on the forward-plan opportunities for these assets and a new dividend policy.

Rigas continued: “Italy, Egypt and Croatia will remain core pillars of our operations, and we look forward to driving further investment, development, and value creation in all countries. Our commitment to the Mediterranean and the wider region is unwavering, and we will continue to expand our portfolio, support energy security, and deliver sustainable growth in the years ahead.”