Italy’s Edison Company plans to sell its $2-3 billion exploration and production (E&P) division to focus on its retail operations, four oil and gas sources told Reuters.
The move will see the company, which is 99.48% owned by French utility firm EDF, leave the fossil fuel industry.
The company’s Egyptian assets, which include Egypt’s Abu Qir concession as well as over 250 million barrels of oil equivalent (mboe) in reserves, are seen among the most attractive parts of Edison’s portfolio.
Edison holds a 100% operated participating interest in the Abu Qir concession in the Nile Delta offshore. It also has a 20% participating interest in the Rosetta offshore production license. Edison also operates with a 60% working interest in the West Wadi El Rayan concession, according to the company’s website.
Edison has been eager to boost the size of its gas retail and domestic electricity business, wagering on increasing competition in the market, as the customers of retail energy are getting more able to select their supplier.
The company has chosen investment banks Perella Weinberg and Rothschild & Co. to organize the sale.