Energean Angola expansion on hold after Etu preemption

Energean announced 'on Wednesday that its $260m deal to 'buy Chevron offshore assets in Angola is a limbo, after Etu acted to match the offer. This has complicated its efforts to expand its business beyond its Eastern Mediterranean gas core.

Energean announced its $260 million contract in March. It was part of its plan to expand its gas fields beyond Israel's flagship offshore fields, which have been shut down several times due to conflict.

Energean stated that the Company was notified by Chevron about a notice received from Etu Energias claiming to have exercised its pre-emption right in relation to this transaction.

The Company states that any assignment -to Etu Energias -must be done on the same terms or similar to 'the sale and purchase agreements between Energean &?Chevron. This includes the prerequisite that the buyer must provide evidence to the seller that they are a 'proven deepwater oil-and-gas operator with at least one existing deepwater producing asset in water depths exceeding 300 metres.

An agreement to sell Energean Mediterranean assets to Carlyle failed last year. Reporting by Shadia Naralla

(source: Reuters)