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Carlyle’s acquisition of a portfolio of Energean’s oil and gas projects, which is quoted in London, has collapsed in a blow to the plans of the purchase group to build an energy company centered on the Mediterranean.
The acquisition was the last incursion into the oil and upstream gas sector on the background based in the United States, which has continued to buy and sell producing assets even when most of its competitors have supported such investments.
The two companies had established a deadline on Thursday to complete the agreement, which was announced in June. Carlyle could not ensure “certain regulatory approvals” in Italy and Egypt and the companies could not reach an agreement on an extension, said Energean in a statement on Friday.
A Carlyle spokesman said the group had made “significant and extensive efforts in good faith to close the transaction, but ultimately could not satisfy all conditions.”
Carlyle had agreed to pay $ 820 million guaranteed by the asset portfolio in Egypt, Italy and Croatia, including $ 504mn in initial cash, with additional payments depending on the performance in the portfolio.
The main regulatory obstacle referred to Italy and a requirement that Carlyle provides financial guarantees for the Italian subsidiary that would finally possess the assets, said people familiar with the process.
Carlyle had planned to increase the production of projects to 50,000 barrels of oil equivalent to the day, of approximately 34,000 BOE/D in 2023, and then use the structure to make additional acquisitions throughout the Mediterranean.
The new company was supposed to be chaired by former BP Executive President Tony Hayward, who is also president of the oil producer centered in Colombia in Carlyle, Sierracol.
Despite the reverse, it is understood that the private capital group remains interested in other oil and gas assets in the region.
The emblematic development of Energean is the Karish Gasfield offshore Israel, which began to occur in 2022 and pumped 112,000 BOE/D last year.
“While I am disappointed that Carlyle has not been able to obtain the necessary approvals in Italy and Egypt … I want to reaffirm that this result does not change our strategic direction or our commitment to the growth and returns of the shareholders,” said Energy Executive Director Mathios Rigas in a statement.
Energean shares increased 5 percent in morning negotiation on Friday.
