ENERGEAN’S NORTH SEA SALE TO NEPTUNE COLLAPSES

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Energean Oil & Gas (ENOG.L) said on Tuesday it seeks to renegotiate its acquisition of Edison’s (EDNn.MI) upstream portfolio after its plan to immediately sell on Edison’s North Sea assets to Neptune Energy fell through.

Energean is the latest in a string of oil and gas companies to seek a lower price for an acquisition agreed before the oil price collapsed by around two-thirds in the first quarter.

Private equity-backed gas producer Neptune said in March it would cut its budget for development projects by around $300 million this year and would not pay a cash dividend to its owners Carlyle (CG.O) and CVC Capital Partners.

In a move to expand in the eastern Mediterranean, Energean last year agreed to buy the oil and gas division of Edison for up to $850 million..

About $155 million was shaved off when Edison’s Algerian assets could not be sold to Energean.