Edison (part of the EDF group) has signed an agreement with Energean Oil and Gas to sell its 100% stake in its oil and gas exploration and production (E&P) subsidiary Edison E&P (and in its affiliates) for US$750m (€665m), with an additional consideration of US$100m (€89m) contingent on the commissioning of Cassiopea development gas project in Italy. Moreover, Edison will receive royalties related to further potential developments in Egypt, which would bring the total transaction to nearly US$1bn (€885m). The transaction is expected to close by the end of 2019.
The transaction includes Edison’s activities, mining titles and corporate shareholdings in the hydrocarbons business in Italy and abroad, corresponding to a portfolio of 97 concessions, permits and licenses (56 in Italy and 41 abroad). Edison is active in Egypt (5 exploration licenses and 10 production concessions), Norway (10 exploration licenses), the United Kingdom (2 exploration licenses and 6 production concessions), Denmark (3 exploration licenses), Greece (2 exploration licenses), Israel (1 exploration license), Algeria and Croatia (1 production license in each country). In 2018, Edison held 209 Mboe of hydrocarbon reserves and produced 18.1 mboe of oil and gas (of which 3.9 mboe were in Italy and 14.2 mboe abroad).
The proceeds from the sale will support Edison's strategic development plan, which focuses on renewable energies and natural gas, on strengthening activities in the retail market and in energy efficiency services. Edison aims to produce 30% of its energy from renewables by 2030 and to reduce its carbon factor to 260 gCO2/kWh. The group operates 91 hydropower plants, 45 wind parks and 65 solar PV plants with a combined capacity of 1.9 GW in Italy (2018); they produced more than 4 TWh in 2018, i.e. 21% of the group's total power generation (19 TWh, including power generation from 14 thermal power plants).