Engie has received a firm and binding offer from Neptune Energy for the sale of its 70% interest in Exploration & Production International (EPI) to Neptune Energy for an aggregate value of €4.7bn (at 100%, including €1.1bn in decommissioning liabilities deconsolidated from ENGIE’s balance sheet).
EPI is the exploration and production (E&P) branch of Engie, which sold a 30% stake to China Investment Corporation (CIC) in December 2011. EPI has upstream oil and gas interests in the United Kingdom, Norway, Germany, the Netherlands, Indonesia, Algeria and Egypt. A the end of 2016, EPI had booked 2P reserves of 672 mboe (79% gas and 21% liquid hydrocarbones) and its equity production was 148 kboe/d in 2016. In 2016, the group produced 56.3 mboe of oil (37%) and gas (63%).
The envisaged transaction will be submitted to the relevant employee representative bodies of Engie and EPI, and is subject to customary closing conditions, with completion expected by early 2018. It is expected to translate into a €2.4bn reduction in Engie's consolidated net financial debt at closing.