Gas producer Energean has renegotiated the price of a deal which includes the acquisition of the UK North Sea business of Edison E&P.
The price has been reduced to $284 million from $750 million after Energean opted not to buy Algerian and Norwegian assets from the Italian firm as part of the deal.
It will still buy the UK assets, which include a 25% interest in the Glengorm and 10% of the Isabella gas-condensate discovery. Glengorm is one of the biggest discoveries in the UK North Sea in the last decade with an estimated 250 million barrels of oil equivalent.
Energean agreed to buy Edison in July last year and had planned to sell the UK assets on to Neptune Energy, which pulled out of that deal in May. Chinese firm CNOOC has a 50% stake in Glengorm while Total owns the other 25%.
The deal also includes Italian, Egyptian, Croatian and Greek assets.
Energean chief executive Mathios Rigas said: "We are pleased to have agreed revised terms for our acquisition of Edison E&P, which will now exclude the Algerian assets and Norwegian subsidiary, and for which we have agreed $466 million of total reductions to the original consideration.
"I look forward to completing the transaction, which I believe represents excellent value for our shareholders and also enhances our material, gas-focused platform for value creation in the Eastern Mediterranean. Upon completion, our core focus, alongside the Karish project, will be integrating our teams and portfolios, which will further secure our long-term, resilient cash flow profile and option-rich portfolio.
"Following completion, around 70% of our production will be sold under long-term gas sales agreements that insulate our future revenues against oil price volatility. We will continue to own and operate the majority of our asset base, and are well-funded for all of our projects.
"Our financial and operational positioning will ensure that we can continue to grow the business but also respond quickly and appropriately to changes in the macro environment, if needed, to protect our business and our shareholders."
