Naturgy, Eni Reach Deal With Egyptian Government to End Joint Venture
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
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
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;
(END) Dow Jones Newswires
December 01, 2020 10:30 ET (15:30 GMT)
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