|Delayed - 01/20 11:38:00 am|
Naturgy, Eni Reach Deal With Egyptian Government to End Joint Venture
|12/01/2020 | 10:31am|
By Joshua Kirby
Naturgy Energy Group SA and Eni SpA said Tuesday that they had reached a new agreement with the Egyptian government to resolve a dispute relating to the companies' joint venture, Union Fenosa Gas.
The agreement entails the end of the joint venture and Naturgy's departure from Egypt. It will also see operations restart at the Damietta liquefaction plant in the first quarter of 2021, Eni said. UFG's 80% participation in the plant will be transferred partly to Eni and partly to the Egyptian Natural Gas Holding Co.
The deal is aligned with a previous agreement that was reached in February but terminated in April due to certain conditions not being met.
UFG is valued by the agreement at a total sum of up to $1.5 billion, including $1.2 billion for its Egyptian assets and $300 million for its assets elsewhere. Naturgy will receive around $600 million in cash payments under the deal, as well as most of UFG's assets outside of Egypt, excluding its commercial operations in Spain, which will be transferred to Eni.
The transaction should go ahead in the first months of 2021 dependent to the usual conditions being met, Naturgy said.
Write to Joshua Kirby at email@example.com; @joshualeokirby
(END) Dow Jones Newswires