UK-based SDX Energy has signed non-binding heads of terms with an undisclosed large multinational operator for the sale of all of its oil and gas assets in Egypt for an undisclosed sum.

The move comes as SDX continues to ‘assess value-accretive opportunities’ across energy infrastructure and the energy transition in Morocco.

SDX holds oil and gas exploration and development assets in Egypt’s Eastern Desert and the Nile Delta.

In a press statement, SDX said: “The signed heads of terms represents an important milestone, towards crystallising value for shareholders and optimising the company's asset portfolio. The disposal will position the company for upcoming diversification into Morocco's energy transition sector.

“Moving towards the energy transition narrative also gives access to a wider pool of capital, setting SDX on a new path of growth with the ultimate aim of delivering sustainable returns for shareholders.”

The sale is subject to the final transaction documentation negotiation and obtaining sale approvals from the Egyptian Government, among other conditions.

SDX said that the heads of terms are non-binding and there is no certainty that the sale would be complete.

The sale is due to be completed by the end of 2023.

SDX managing director Daniel Gould said: "SDX, re-energised with new management, will focus on monetising exciting opportunities around its Moroccan assets and related energy transition sector-plays in order to reward and deliver capital growth to our shareholders in the near term."

The company said the new senior management is considering optimising its asset portfolio to allow both organic and inorganic growth for the company.

SDX’s South Disouq concession in the Nile Delta comprises the producing South Disouq, Ibn Yunus and Sobhi gas fields.

The company also owns stake in the Meseda and Rabul producing onshore oil fields located in the G and H blocks, respectively, within the West Gharib concession, at the western margin of the Gulf of Suez.