Energean signed an agreement for acquiring Edison for $750 million, Egypt Oil & Gas reports.

In addition to the initial payment of $ 750 million, Energean will pay an additional $100 million after gas production in Italy’s Cassiopea field begins operating in 2022.

Edison exploration and production (E&P) portfolio includes producing in the growing eastern Mediterranean natural gas hub, with a significant presence in Egypt’s offshore basin.

Sotiris Chiotakis, Energean’s Corporate Communication, told Egypt Oil & Gas, “Egypt has always been a part of our interest as we are a Mediterranean focused company so we are familiar with the area.”

The acquisition of Edison E&P is considered one of the largest independent E&P companies comes is in line with Energean’s strategy of creating the leading independent, gas-focused E&P company in the Mediterranean.

Edison’s E&P portfolio adds working interest 2P reserves of 292 million barrels of oil equivalent (mmboe) and 2018 net working interest production of 69,000 barrels of oil equivalent per day (boe/d). Sotiris stated that “Edison’s portfolio was very attractive as it gives us the opportunity for further growth in the future.”

The Enlarged Group is expected to produce more than 140,000 boe/d in 2021, as Karish and Tanin development project comes onstream, with a trajectory to approximately 200,000 boe/d once the Energean Power FPSO reaches full capacity.

Edison E&P adds 2018 EBITDAX of $434 million and operating cash flow of $302 million, in addition to funding of initial consideration through $265 million equity placing and $600 million committed bridge loan facility.