Coro Energy said it granted an option to buy its Italian gas portfolio for up to €7.5mln to a private company, Zodiac Energy
The energy and renewables group also announced chief executive Mark Hood has moved to a non-executive role and become Country Chairman - Philippines with immediate effect.
Leonardo Salvadori, previously Coro's managing director - Italy, has been appointed managing director - oil & gas, with overall and extended operational responsibility for the company's hydrocarbon assets across Asia and Italy.
Michael Carrington, previously Coro's chief operating officer, is now managing director - renewables.
James Parsons, executive chairman, said: “We welcome Leo and Michael to their expanded roles, as we continue to refine our management structure following our decision to exit Italy and in anticipation of progress on Duyung.
“We also thank Mark for his time at the helm during a very volatile period and look forward to his ongoing support as a non-executive director and Country Chairman in the Philippines.
Coro said it decided to sell its Italian assets after receiving unsolicited approaches following the recent rise in European gas prices and due to its focus on South East Asia at Duyung, offshore Indonesia.
Zodiac Energy’s option, which runs for five months, comprises €6mln in cash on completion and further contingent payments of up to €1.5mln over a three-year period.
Parsons said: “The proposed divestment is fully in line with the company's strategic objectives, enabling Coro to focus exclusively on growing its oil, gas and clean energy portfolio in South East Asia where demand for energy and the opportunity for material expansion remain very strong.
“The proposed divestment provides an immediate cash payment and the ability to retain cash flows from the Italian portfolio in the near term prior to any disposal, whilst also securing a fixed-priced exit. “