UK-based SDX Energy announced it has signed a non-binding heads of terms with an undisclosed large multinational operator to sell off its oil and gas assets in Egypt.

The singing comes as SDX Energy continues to “assess value-accretive opportunities,” and “will position the company for upcoming diversification into Morocco's energy transition sector,” the company said in a statement.

The company expects to close the transaction by the end of the year.

Presently, SDX only operates in Egypt and Morocco, with several oil and gas exploration and development assets in Egypt’s Eastern Desert and the Nile Delta. The company holds a 55% interest in the South Disouq and Ibn Yunus fields, and a 50% interest in the Meseda and Rabul fields within the West Gharib concession in the Eastern Desert.

According to SDX Energy’s release, the sale will enable it to “optimize its asset portfolio and concentrate on expanding its presence in Morocco's energy transition sector.”

The statement does not disclose the buyer’s identity, merely describing it as a “large multinational operator” with established interests in Egypt. The price of the transaction was also not disclosed.  

SDX highlighted that completion of the transaction remains subject to, among other conditions, the negotiation of final transaction documentation and obtaining Egyptian government approvals for the sale.