Mediterranean divests Italy assets

Mediterranean Oil & Gas yesterday said it would divest its non-core exploration and production assets in Italy, as they are no longer considered part of the growth strategy for gas production. Mediterranean will sell 13 gas assets to Canoel International Energy Limited (CIL) for €100m (£62m). The gas production that will be divested stands at 13,800 cubic metres a day, representing six per cent of its revenues. CIL will assume liability for all future costs relating to the assets, although Mediterranean will pay €1.25m to CIL towards these costs. After these divestments, Mediterranean will still have an interest in 15 onshore Italian gas production sites. Boss Bill Higgs said the company would invest in exploration and production opportunities that add “material resources” to the portfolio.