Carlyle will leverage its track record of successful carve outs of E&P assets to establish a standalone business with operations in Italy, Egypt and Croatia
Global investment firm Carlyle (NASDAQ: CG) today announced that it has agreed to acquire a portfolio of gas-weighted exploration and production (“E&P”) assets in Italy, Egypt and Croatia from Energean plc, a London-based company focused on developing resources in the Mediterranean. The transaction is subject to customary regulatory approvals.
This transaction will deliver to Carlyle a diversified portfolio of highly strategic gas-weighted assets with expected production equivalent to 47,000 barrels of oil per day and operations across Italy, Egypt, and Croatia, with well-advanced, large-scale developments in markets that are supportive of new gas development. The portfolio includes interests in Cassiopea, Italy’s largest gas field in terms of reserves, and Abu Qir, one of the largest gas producing hubs in Egypt.
Carlyle will leverage its track record and experience in successful carve outs of E&P assets, following previous investments in Neptune Energy, Assala Energy and SierraCol, to establish a standalone, leading E&P company in the Mediterranean, through organic growth initiatives and M&A. As part of the transaction, Tony Hayward, (ex-CEO of BP, current Executive Chairman of SierraCol) will become Chairman of the company, focused on scaling its operations in the region.
Equity for the transaction will come from the Carlyle International Energy Partners (“CIEP”) platform, a private equity fund that invests in energy opportunities in Europe, Africa, Latin America and Asia. Carlyle has a large and diverse global energy platform that invests across the full spectrum of electrons and molecules necessary to develop new energy pathways, and an established track record of supporting traditional energy businesses execute decarbonization strategies.
Bob Maguire, Co-Head of Carlyle International Energy Partners, said: “We are delighted to acquire this portfolio of high-quality assets in Italy, Egypt and Croatia, countries that are actively encouraging new gas development, which we believe will play a central role in the energy transition. We look forward to supporting the transformation of these assets into a scalable E&P platform in the Mediterranean through the execution of near-term developments, unlocking organic growth opportunities, M&A, and accelerating the delivery of existing decarbonisation plans.”
Mathios Rigas, Chief Executive Officer of Energean, said: “Carlyle is the right custodian of this asset base and will create an excellent home for our colleagues. We wish them every success and look forward to watching their progress as we continue to develop and diversify our natural gas focused asset base. I thank our colleagues based in Egypt, Italy and Croatia for their hard work and dedication over the years.”
Tony Hayward, Chairman Designate of the NewCo, said: “This acquisition provides a strong platform to build a standalone regional champion in the Mediterranean, one of the fastest growing natural gas markets in the world.”
