In June 2024, gas exploration and production company Energean (TASE: ENOG; LSE: ENOG), which holds the rights to the Karish and Tanin reserves in Israeli waters, announced the sale of its asset portfolio in Egypt, Italy and Croatia to private equity firm Carlyle International Energy Partners. A week ago, on March 17, Energean notified the stock exchange that the deal was liable to be cancelled because of Carlyle’s difficulty in obtaining approval from the Italian and Egyptian regulators. On Friday last week, Energan announced that the deal had in fact been cancelled. Energean’s share price on the Tel Aviv Stock Exchange fell 4.5% on Thursday, making it a 12% fall for the week. This morning, the share price is up by 4%.
The assets in question are developed and active gas reservoirs. In the original announcement of the sale, they were valued at $820-940 million, representing a threefold profit on the company’s investment in 2020, when it paid $284 million. The profit on the deal was earmarked for the purchase of new assets overseas, unconnected to the Israeli market.
Energean CEO Mathios Rigas said of the deal cancellation: "Today, we are announcing the termination of our transaction with Carlyle. This decision was made in the best interests of all our stakeholders, including our employees, investors, host governments, and partners. These groups rely on clarity of ownership and responsible stewardship to ensure the effective management of our vital oil and gas assets, and we remain fully committed to meeting these expectations.
"While I am disappointed that Carlyle was unable to obtain the necessary approvals in Italy and Egypt under the terms of the SPA, I want to reaffirm that this outcome does not change our strategic direction or our commitment to growth and shareholder returns. Energean remains a strong, diversified oil and gas company, and we are excited to continue building on our successes.
"Italy, Egypt and Croatia will remain core pillars of our operations, and we look forward to driving further investment, development, and value creation in all countries. Our commitment to the Mediterranean and the wider region is unwavering, and we will continue to expand our portfolio, support energy security, and deliver sustainable growth in the years ahead."
Published by Globes, Israel business news - en.globes.co.il - on March 23, 2025.
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