Energean Acquires TOTAL's Interest in Greek Offshore Exploration Block
Mediterranean-focused E&P company Energean Oil & Gas Plc has entered into an agreement with French major TOTAL SA to acquire its 50% operated interest in Block 2 located in the eastern Mediterranean off the coast of western Greece. Greek oil & gas company Hellenic Petroleum SA currently owns a 25% interest in the block, with Edison Exploration & Production SpA, which Energean is currently in the process of acquiring, holding the remaining 25%. Energean announced the conditional acquisition of Edison E&P in July 2019, for a total consideration of US$750 million plus up to US$100 million of contingent consideration. Post completion of the Edison E&P transaction, Energean will own a 75% interest in Block 2.
Energean will be expected to meet EUR 0.5 million of net remaining expenditure towards the satisfaction of the minimum work obligation on the block, which includes the acquisition and processing 1,800 km of 2D seismic. Work to date on the licence has identified that the block contains part of a large potential target that is expected to be de-risked through the planned seismic programme. The feature straddles the Greek and Italian maritime border, with approximately 60% of the prospect located within Block 2. Edison E&P also participates in adjacent Italian offshore exploration block 84F.R-EL (pending award).