Repsol has exercised its pre-emption rights to buy some of departing Edison’s stake in the Reggane Nord project, in Algeria.
In May, Wintershall Dea struck a deal to buy Edison’s 11.25% stake in the licence.
Repsol has now exercised its rights to participate in the deal. Wintershall Dea will now gain 4.5% from Edison, while Repsol will take 6.75%.
Edison said it had struck an amendment to the deal, in line with the joint operating agreement (JOA). The deal continued to value the stake at $100 million. The amendment does not change any other terms.
Reggane Nord began producing in 2017. It has 19 producing wells, with output of 2.8 billion cubic metres per year. The partners on the field sell all the gas to state-owned Sonatrach. The Algerian company also has a 40% stake in the licence.
The deal marks Edison’s exit from the exploration and production business. The company has set out a plan for a major shift towards renewable energy.
Repsol, on the other hand, has made the case for a more balanced perspective. Chairman Antonio Brufau, speaking at the AGM recently, said Europe must focus on energy security and not be beholden to dogma.
“We must ask ourselves whether it is realistic to entrust the recovery from the crisis only to electrification without taking into account the role that natural gas and oil have to play for many years to come,” Brufau said.
Repsol has also made commitments to the energy transition.