Energean Signals UK North Sea Assets Better Suited for New Ownership

Energean's chief executive, Mathios Rigas, has indicated that the company’s UK assets would be a better strategic fit for another owner, citing their significant associated tax benefits. The London-listed energy firm is focusing its growth efforts on other regions, including the Mediterranean and West Africa.

Rationale for Divestment

Energean's UK portfolio consists of stakes in aging North Sea fields that produce approximately 1,000 barrels of oil equivalent per day. According to a company presentation, these assets also carry substantial tax losses amounting to £715 million ($968 million).

Rigas explained to Reuters that an owner with a larger production footprint in the UK North Sea could utilize these tax losses to offset their own tax liabilities, making the assets more valuable to them. Despite this strategic assessment, the CEO clarified that Energean has no active discussions underway regarding a sale.

Strategic Focus and Expansion

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While signaling a potential exit from the UK, Energean is actively pursuing growth opportunities elsewhere. The company's strategic priorities include:

• Israel: The company is working to unlock additional offshore oil reserves and is seeking to acquire more acreage in the country's upcoming licensing round.
• Egypt: Energean is looking for partners to conduct exploration drilling near its Abu Qir assets, according to the company's CFO.
• West Africa: Rigas noted that Angola remains an area of interest, on the condition that Energean can either operate the assets or partner with a firm of equal or greater operational capability. The company is also exploring opportunities in other West African nations.

Other Corporate Developments

In a separate matter, Rigas confirmed that arbitration hearings concerning a dispute with Italian energy major ENI over the Cassiopeia gas field are expected to commence in the first half of 2027. The context for a potential UK asset sale is notable, as major players like BP are also reportedly seeking buyers for their UK North Sea portfolios, potentially creating a more active market for such assets.