Energean, a UK-based gas producer, has terminated its divestment agreement with Carlyle International Energy Partners due to delays in obtaining regulatory approvals in Italy and Egypt.
The deal, initially valued at up to $945m (£729.33m), included Energean’s oil and gas assets in Egypt, Italy and Croatia.
Energean announced that the regulatory approvals required by Carlyle were not obtained or waived, according to the terms of the sale and purchase agreement (SPA) signed on 19 June 2024.
The company also failed to reach an agreement with Carlyle to extend the long-stop date beyond 20 March 2025.
As a result, Energean has opted to terminate the SPA and will not proceed with the transaction.
Energean CEO Mathios Rigas said: “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.
“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.”
The agreement signed in June 2024 was initially intended to divest Energean’s oil and gas assets to an entity controlled by Carlyle.
Carlyle plans to establish a new company to pursue additional acquisitions in the Mediterranean region.
Energean had announced a $1.2bn final investment decision in July last year for the Katlan development project in Israel.
Energean owns and operates the Katlan project, which is expected to commence gas production in the first half of 2027.
The Israeli Government approved the development plan in December 2023, and the initial phase of the field is estimated to contain 229 million barrels of oil equivalent.
