M&A Watch: PICO’s Cheiron acquires 50% stake in Sahara North Bahariya Ltd - ENTERPRISE/ AL BORSA

Wednesday, 10 May 2017

M&A WATCH- Our friends at PICO are on a tear this week: PICO Group subsidiary Cheiron Egypt acquired a 50% stake in Sahara North Bahariya Ltd for USD 83 mn from EFG Capital Partners Fund III, sources close to the matter told Al Borsa on Tuesday. Cheiron reached financial close on the transaction earlier this week after winning approval from the state’s Egyptian General Petroleum Corporation. Sahara North Bahariya owns the North Bahariya oil concession in the Western Desert. The news comes on the heels of news that Cheiron also acquired 100% of Engie’s West El Burullus gas concession earlier this week.

PICO’s Cheiron Egypt acquires West El Burullus gas concession from Engie - ENTERPRISE

Tuesday, 9 May 2017

PICO Group subsidiary Cheiron Egypt has acquired 100% of Engie’s West El Burullus (WEB) gas concession in a transaction announced yesterday. WEB is located in shallow offshore Mediterranean waters with recoverable reserves of c.200 bcf gas and 3 mn bbl of condensates. 

BNP Paribas, financial advisor on the transaction, said in an emailed statement that “WEB is targeting plateau production of 100 mcf/d with first gas in 2020.” The transaction, it said, supports Engie’s “global strategy to exit E&P sector and focus on renewable energies,” while PICO will diversify its “Egyptian E&P asset base into new geological basins with higher gas component. BNP Paribas invited more than 50 bidders to take part in the process, with more than 10 signing confidentiality agreements. The transaction value has not been released. PICO, which controls assets in Egypt, Romania and Mexico, is owned by the Diab family of Cairo.