Naturgy, Eni Reach Agreement With Egypt Government in LNG Dispute
February 27 2020 - 10:39AM
Dow Jones News
By Giulia Petroni
Naturgy Energy Group SA and ENI SpA have agreed the terms to
"amicably" resolve the disputes concerning Union Fenosa Gas with
the Egyptian government, the Spanish utility company said
Thursday.
The agreement values UFG--a 50/50 joint venture between Naturgy
and Eni--at a total consideration of $1.5 billion, said Naturgy. Of
this amount, $1.2 billion is related to Egyptian assets and $300
million to assets outside the country.
Naturgy said it would receive a cash payment of $600 million,
along with most of the assets outside of Egypt--excluding
activities in Spain--and end its joint venture with Eni.
"The completion of the transaction will result in Naturgy's
departure from Egypt and the end of its joint-venture with Eni,
having no obligation in the future to buy liquefied natural gas
from the country," Naturgy said.
The parties are expected to execute the transaction in the first
half of the year, the company said.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
February 27, 2020 10:24 ET (15:24 GMT)
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