Gas producer Energean warns of possible $356 Million hit due to Cassiopea Reserve downgrade
Energean flagged on Tuesday a potential 300?million euros ($356?millions) impairment of its 2025 results?related to its minority stake in Eni's?Cassiopea?gasfield in Italy.
Energean expects that the reserves at Cassiopea will be reduced by 3-4 million barrels due to lower performance than Eni initially expected.
Energean holds 40% of the project. Energean said that it was in arbitration with Eni and sought 265 million euro for costs paid without authority, as well as lost revenue. Eni wanted $154 million to settle disputed invoices. Eni did not respond immediately to a comment request.
At 0940 GMT the FTSE-250 index was down 1.9%, below a broader index that included European energy companies which fell 0.2%.
The Eastern Mediterranean-focused gas producer, which is due to report 2025 results ?on March 19, suspended operations in Israel last year due to geopolitical risks.
Energean expects a short-term decline in Egypt before new drilling activities and the first oil from its large new Israeli Katlan gas field and Croatian Irene fields begin in the first half?2027.
The company forecasted that this year's production would be between 140,000-150,000 barrels of oil equivalent (boed).
Energean said it was looking for deals that would boost its growth, particularly in West Africa.
(source: Reuters)
