Neptune, DEA submit bids for Edison oil and gas assets – sources
Pair of companies looking to take over oil and gas assets from Italian player.
Private equity-backed Neptune Energy and Germany’s DEA have submitted bids for the oil and gas assets in Egypt, Italy and elsewhere which EDF’s Italian unit Edison is selling, industry sources said on Friday.
The offers are non-binding at this stage, one of the sources said. Edison wants to exit oil and gas production to focus on its domestic electricity and gas retail business.
Sources with knowledge of the matter said the portfolio could be worth as much as $2 billion.
Edison’s oil and gas production has grown sharply in the past decade, with activities focused in Italy, the British and Norwegian North Sea, Egypt, Israel, Algeria, Croatia and the Falkland Islands.
The Egyptian assets, including the Abu Qir concession and more than 250 million barrels of oil equivalent in reserves, are one of the most attractive parts, accounting for more than 50 percent of the value of the portfolio, sources said.
The Italian assets account for about a third of the value.
“You’re buying Edison for Egypt,” one source with knowledge of the matter said.
EDF, Neptune, and DEA, which is in the process of merging with BASF’s Wintershall, declined to comment.