Italy's Edison said on Monday it would exclude its Norwegian unit from a sale of upstream operations to Energean, having earlier dropped its Algerian unit from the planned sale.

Energean last year agreed to buy the oil and gas operations for up to $850 million but Edison said the latest amendments to the deal had reduced the enterprise value of the assets to be sold to $284 million.

A unit of French state-controlled utility EDF, Edison said it would retain control of Edison Norge, which controls the group's upstream activities in Norway, until market conditions "allow a full valuation of its assets".

Edison said it expected to close the deal with Energean by the end of the year and confirmed its strategy to get out of the upstream business and to focus on renewable energy.

Mediterranean-focussed Energean said in May it was in talks with Edison to amend its agreement to exclude the Norwegian subsidiary from the deal after its plan to immediately sell on Edison's North Sea assets to Neptune Energy fell through.

Earlier this year the two companies agreed to exclude Edison's Algerian assets, worth $155 million, from the deal, citing lack of authorisation from Algeria's Ministry of Energy.

(Reporting by Giulio Piovaccari; editing by Jason Neely)