Carlyle to acquire assets from Energean, aims to scale gas-weighted Mediterranean company

Investment firm Carlyle has agreed to acquire a portfolio of gas-weighted exploration and production assets in Italy, Egypt, and Croatia from Energean plc, London, for an enterprise value of up to $945 million, of which $820 million is firm, the companies said in separate releases June 20.

Carlyle seeks to establish a standalone exploration and production company in the Mediterranean.  Tony Hayward (former chief executive of BP, current executive chairman of SierraCol) will become chairman of the company, focused on scaling operations in the region.

Through its deal with Energean, Carlyle gains a diversified portfolio of gas-weighted assets with expected production equivalent to 47,000 b/d with advanced, large-scale developments in markets supportive of new gas development, the firm said in its release. The portfolio includes interests in Cassiopea, Italy’s largest gas field in terms of reserves, and Abu Qir, a large gas producing hub in Egypt.

For Energean, the deal enables the company to focus on its gas-weighted strategy underpinned by Karish field in Israel and recent farm-in to the Anchois field in Morocco. Energean said the deal divests later life assets, removing over 60% of the group’s decommissioning liabilities.

Completion is expected by yearend 2024, subject to customary regulatory and antitrust approvals.