Energean's Angola expansion in limbo after Etu preemption

LONDON, June 3 (Reuters) - ​Energean ⁠said on Wednesday its $260 million ​deal to buy Chevron's Angola offshore assets is in limbo ​after ‌partner Etu moved to match the offer, complicating its ⁠push to expand beyond its ⁠core Eastern Mediterranean gas ​business.

Energean announced the $260 million deal in March, following through on its plan to expand beyond its flagship ​gas ‌fields offshore Israel, which have had to be shut down repeatedly due to conflict in the region, into West Africa.

"The Company has been ​informed by the seller, Chevron, that it has received ‌notice from one of the joint venture partners, Etu Energias, purporting to exercise ‌its pre-emption rights in relation to the Transaction," Energean said.

"The Company notes that any assignment to ​Etu Energias must be made on the same or equivalent terms ‌as the sale and purchase agreement between Energean and Chevron. This includes the condition precedent requiring the ⁠buyer to ⁠deliver evidence to the seller that ‌it is a proven deepwater oil and gas operator ​of at least ​one existing deepwater producing asset ‌in water depths greater than 300 metres."

Last year, an agreement to sell some of Energean's Mediterranean assets to Carlyle collapsed. (Reporting by Shadia Nasralla)

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