Edison has completed the sale of its 11.25% stake in the licence for the North Reggane onshore gas project in Algeria to Germany’s Wintershall Dea and Spain’s Repsol.

As per the deal, which were announced in 2022, Repsol has acquired a 6.75% stake in the gas field while Wintershall Dea acquired a 4.50% interest.

The deal follows an exclusive contract signed in May 2022 between Edison and Wintershall Dea that was modified following the exercise of right to pre-emption by the Spanish company.

Edison earlier said the agreement, worth $100m, will signal its exit from oil and gas exploration and production activities.

In a press statement, Edison said: “With this transaction, Edison confirms its strategic commitment to focus its investments toward energy transition and security of supply of the Italian energy markets with over 10 billion euros of CAPEX to be invested between 2023 and 2030.”

Commissioned in 2017, the Reggane North natural gas project comprises six fields in blocks 351c and 352c of the Reganne basin in the Algerian Sahara desert.

These fields, which cover a total area of 1,800km² in the south-west of Algeria, include Azrafil Sud-Est, Kahlouche, Kahlouche Sud, Reggane, Sali and Tiouliline.

Wintershall Dea chief operating officer and board member responsible for Middle East and North Africa Dawn Summers had earlier said: “Algeria holds great potential for natural gas production and future energy projects.

“That is why we want to grow our presence in Algeria and contribute to the development of its energy sector. Increasing our interest in the Reggane Nord project is a first step.”

According to Edison, the North Reggane field comprises 19 currently productive wells, which provide around 2.8 billion cubic metres of gas per year.

The production from the North Reggane field is sold entirely to Algerian state-owned oil company Sonatrach based on a long-term contract.