North African-focused oil and gas company SDX Energy said on Oct. 18 that talks to buy some of BP’s Egyptian assets have been abandoned.
Reuters reported earlier in the year, citing banking sources, that BP is seeking buyers for its stake in a 50-year-old oil and gas business in Egypt, then estimated to be worth around $500 million.
“Discussions regarding its proposed acquisition of a significant package of assets in Egypt from BP have been terminated by mutual agreement,” SDX said in a statement, without giving details on why the talks were ended.
RELATED: SDX Energy Confirms Talks With BP To Buy Assets In Egypt
It was not clear which assets SDX was in talks with BP over. SDX, whose shares were suspended from trading on London’s AIM exchange when it confirmed on Sept. 20 it was in talks with BP, had said the acquisition would constitute a reverse takeover.
SDX shares started trading again on Oct. 18 and were down around 4.3% at 0729 GMT.
“Clearly it’s disappointing that this transaction has not materialized,” SDX CEO Paul Welch said in the statement.
“It was an exciting opportunity but... we are screening potential deals all of the time and we know that there will be others that will serve to fast track our stated goal to be a North Africa-focused [exploration and production firm] of scale.”
BP officials had no immediate comment.
Recommended Reading
Midstream M&A Adjusts After E&Ps’ Rampant Permian Consolidation
2024-10-18 - Scott Brown, CEO of the Midland Basin’s Canes Midstream, said he believes the Permian Basin still has plenty of runway for growth and development.
Post Oak-backed Quantent Closes Haynesville Deal in North Louisiana
2024-09-09 - Quantent Energy Partners’ initial Haynesville Shale acquisition comes as Post Oak Energy Capital closes an equity commitment for the E&P.
Analyst: Is Jerry Jones Making a Run to Take Comstock Private?
2024-09-20 - After buying more than 13.4 million Comstock shares in August, analysts wonder if Dallas Cowboys owner Jerry Jones might split the tackles and run downhill toward a go-private buyout of the Haynesville Shale gas producer.
Aethon, Murphy Refinance Debt as Fed Slashes Interest Rates
2024-09-20 - The E&Ps expect to issue new notes toward redeeming a combined $1.6 billion of existing debt, while the debt-pricing guide—the Fed funds rate—was cut on Sept. 18 from 5.5% to 5%.
Dividends Declared Sept.16 through Sept. 26
2024-09-27 - Here is a compilation of dividends declared from select upstream, midstream and service and supply companies.