Baku, Azerbaijan, Dec.12
By Leman Zeynalova – Trend:
Italy’s Edison company expects the procedure of acquisition of the Shah Deniz 2 contract to close in January of 2018, Trend learned from the company.
“We do expect the operation to close early next year, around January,” said the company.
Edison and Spain’s Gas Natural Fenosa signed a binding agreement in October for the acquisition by Edison of Gas Natural Vendita Italia and of Azerbaijan’s Shah Deniz 2 gas contract.
As part of the agreement and subject to the closing of Gas Natural Vendita Italia’s acquisition, Edison will also acquire a 11 TWh long term gas supply contract from the Shah Deniz 2 field.
In particular, the total consideration payable is 30 million euros for the gas supply contract, of which a down payment of 10 million euros and an earn-out of 20 million euros, payable starting from 2021 subject to the first delivery of gas to Italy through the TAP pipeline.
The acquisition of Gas Natural Vendita Italia is subject to the European Competition clearance. Edison will fully control and consolidate Gas Natural Vendita Italia as from the closing date, which is expected to occur between December 2017 and March 2018.
As part of the Shah Deniz 2 project, gas production will increase from 9 to 25 billion cubic meters per year. The produced gas will be exported to Turkey and the European markets through the expansion of the South Caucasus Pipeline and the construction of the Trans-Anatolian (TANAP) and Trans-Adriatic (TAP) gas pipelines.
A contract for development of the Shah Deniz offshore field was signed on June 4, 1996. The field's reserve is estimated at 1.2 trillion cubic meters of gas.
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