Energean Oil and Gas PLC and Edison E&P are excluding Edison’s Algeria assets from the scope of their acquisition, according to a press release.
With the exclusion of the Algerian assets, there will be an adjustment to the total consideration of the acquisition of approximately $150 million.
This decision came as a result of difficulties encountered in obtaining the consent of the Algerian authorities in respect of the Edison E&P assets located in Algeria, leading Energean and Edison to enter into a formal amendment to their sale and purchase agreement (SPA) on April 2.
The company is committed to complete the acquisition of Edison E&P as soon as possible in 2020, subject to the approval of its shareholders and the other relevant governments.
After acquiring Edison, Energean plans to sell Edison E&P’s UK and Norwegian subsidiaries to Neptune for $250 million with a contingent consideration of up to $30 million.
Energean entered into a conditional SPA in July 2019 to acquire Edison E&P. The acquisition deal was originally valued at $750 million initial consideration and $100 million contingent consideration.