Coro Energy PLC (LON:CORO) has struck a deal to divest its legacy Italian gas assets for €300,000 in cash.
The deal marks a material milestone in the company’s energy transition strategy which is focused on South East Asia.
Coro, in a statement, highlighted that incremental capital spending on its renewable energy assets and the Duyung gas project is a more value accretive use of the company's resources. These projects have a greater possibility of generating higher returns for shareholders, it added.
“The disposal allows us to prioritise our time and resources on our low carbon and renewable energy strategy in South East Asia, which continues to gain momentum. We look forward to updating shareholders in due course,” said Mark Hood, Coro chief executive.
Coro is selling the Italian unit to US-incorporated Dubai Energy Partners, which is focused on the acquisition of producing, and shut-in, oil and gas fields. The effective date of the transaction was May 26.
The completion of the transaction is subject to approval by the Italian Ministry of Economic Development, though Dubai Energy Partners will assume responsibility for any operational losses for the Italian portfolio from the time of the agreement's signature until completion.