Edison has agreed to sell its 11.25% stake in the North Reggane license in Algeria to Germany’s Wintershall Dea and Spain’s Repsol, reported Reuters.
Repsol will acquire a 6.75% stake in the gas field while Wintershall Dea will receive a 4.5% interest.
The deal follows an exclusive contract signed in May 2022 between Edison and Wintershall Dea that was modified, following a pre-emption right exercise by Repsol, according to the news agency.
With the sale, worth $100m, the firm will exit from oil and gas exploration and production (E&P) activities.
The transaction forms part of Edison’s strategic realignment towards its energy transition businesses.
The North Reggane field started production in 2017 and comprises 19 producing wells that provide approximately 2.8 billion cubic metres of gas per year.
The gas produced from the wells is sold entirely to Sonatrach in Algeria, under a long-term contract.
The Reggane Nord project includes six gas fields in blocks 351c and 352c of the Reganne basin, in the Algerian Sahara desert.
Covering a total area of 1,800km² in the Southwest of Algeria, the fields include Reggane, Azrafil Southeast, Kahlouche, South Kahlouche, Tiouliline, and Sali.
Prior to the transaction, the Groupement Reggane-Nord (GRN) consortium, which operates the Reggane Nord concession, was co-operated by Repsol (29.25%), Sonatrach (40%), Wintershall Dea (19.5%), and Edison (11.25%).
Earlier this year, Reuters reported that Italy was considering increasing its natural gas supply from Algeria to reduce its reliance on Russian gas imports in the wake of the Ukraine crisis.