A proposed $945m acquisition by private investment major Carlyle of Energean’s assets in Egypt, Italy, and Croatia is facing potential collapse as regulatory approvals remain outstanding ahead of a critical 20 March deadline, according tome report by Reuters.
The report cites Energean as announcing on Monday that the agreement, initially struck in June 2024, was set to enable Carlyle to establish a Mediterranean-focused oil and gas company led by former BP CEO Tony Hayward. However, delays in securing approvals – particularly in Italy and Egypt – have now put the transaction in jeopardy.
“Certain regulatory approvals in Italy and Egypt have not yet been obtained by Carlyle (or waived), and the Company has no assurance that such conditions will be satisfied on or before 20 March, 2025,” Energean stated. The company also confirmed that no extension has been agreed, meaning the deal could be terminated if approvals are not secured in time.
Energean CEO Mathios Rigas emphasised that the Italian approvals remain the key issue, particularly Carlyle’s ability to provide funding guarantees for its subsidiary. He noted that an extension would not be feasible if the issue is structural.
Despite the potential collapse of the deal, Energean remains confident in its portfolio, with the assets in question producing 40,000 barrels of oil equivalent per day – providing valuable diversification beyond the company’s flagship gas fields in Israel.
Energean is set to release its financial results on Thursday, offering further insight into its strategy should the sale fall through.
