RUS | ENG | All
Enter the email or login, that you used for registration.
If you do not remember your password, simply leave this field blank and you will receive a new, along with a link to activate.

Not registered yet?
Welcome!

2015-03-03 20:55:00

RUSSIA SEEK REVIEW

RUSSIA SEEK REVIEW

Russian billionaire Mikhail Fridman said on Monday he would buy a number of gas licenses in the North Sea despite British opposition, threatening legal action if London should force him to sell them on to a third party.

German utility RWE on Monday finalised the sale of its oil and gas production unit DEA to Fridman's investment vehicle LetterOne, ending months of uncertainty over whether the 5.1 billion euro ($5.7 billion) deal would go ahead.

The transaction, first announced a year ago, coincided with sanctions imposed on Russia for its actions in Ukraine, sparking concern in some EU countries about whether a European oil and gas business should fall into Russian hands.

Britain on Saturday said the deal's structure did not alleviate concerns that possible future sanctions against LetterOne's owners Fridman and his partner German Khan could negatively impact production.

"We are deeply disappointed and concerned by your letter, given the extensive efforts the parties have made to address your professed concerns," Jonathan Muir, chief executive officer of LetterOne Holdings S.A., said in a letter addressed to British Secretary of State for Energy and Climate Change Edward Davey.

LetterOne and RWE had sought to allay the concerns in January by offering to keep DEA's British assets separate for a number of years and committing RWE to buy them back should the EU or United States impose sanctions on LetterOne's owners within a year after the closing.

This week, LetterOne hired ex-CEO of oil major BP, John Browne, as executive chairman of LetterOne's energy division saying it wanted to use North Sea assets as a platform for a global expansion.

"GOVERNMENT VIEW"

As a result of British opposition, RWE was forced to abandon its original plan to close the deal in 2014 and move the date further out into 2015, burdening its shares and fuelling concerns that the transaction may fall apart.

Britain said that if the deal goes ahead as planned it may require the companies to arrange for a further sale of the British assets held by DEA, worth about 1 billion euros, to a third party.

LetterOne said it would "seek judicial review" in such a case, including "our right to seek compensation for any damage caused to the value of our investment in RWE DEA".

It was not clear what actions the department of energy would take after LetterOne decided to proceed with the transactions on Monday despite Britain's warning over the weekend.

David Cameron's official spokesman said the British Prime Minister had been consulted over Davey's statement and fully supported it: "The Secretary of State (Davey) is clearly setting out the government view," he told reporters on Monday.

The sale provides RWE with a much-needed cash injection, as the group suffers from weak wholesale power prices, a boom in competing renewable energy capacity as well as a 31 billion euro debt pile it has accumulated over the past decade.

RWE said the sales price had gone up to 5.1 billion from 5 billion agreed in mid-January, citing currency developments since then.

reuters.com

Tags: RUSSIA, LETTERONE, RWE, OIL, GAS, SANCTIONS,
Chronicle:
RUSSIA SEEK REVIEW
2022, January, 20, 15:29:00
ГИДРОЭНЕРГЕТИКА ЦЕНТРАЛЬНАЯ АЗИЯ И КАСПИЙ 2022, ВЫСТАВКА И КОНГРЕСС
Рады сообщить, что свое участие в 6-м ежегодном международном конгрессе и выставке «Гидроэнергетика Центральная Азия и Каспий 2022» (г. Душанбе, Таджикистан, 16-17 февраля) подтвердили уже более 150 руководителей ключевых энергетических компаний региона.
RUSSIA SEEK REVIEW
2022, January, 20, 15:28:00
TRANSPORTATION OIL AND GAS CONGRESS, 21th-22th of February, 2022
Business and Technical Views On The Market At The Transportation Oil and Gas Congress 2022
RUSSIA SEEK REVIEW
2022, January, 20, 15:27:00
LEARN THE LATEST GLOBAL LNG TRENDS WITH LNGCON 2022
The next edition of the International LNG Congress (LNGCON 2022) takes place in Dusseldorf, Germany on March 28-30, 2022. Covering the whole LNG value chain, the Congress brings together decision makers of the industry to tackle the most relevant issues such as the role of LNG in the transition towards zero-carbon shipping.
RUSSIA SEEK REVIEW
2022, January, 20, 15:26:00
ENERGY WEEK CENTRAL ASIA & MONGOLIA 2022
To learn more, join the upcoming high-level international investment conference Energy Week Central Asia & Mongolia 2022, which will take place on 26-28th April in Tashkent.
RUSSIA SEEK REVIEW
2022, January, 20, 15:25:00
WORLD GAS CONFERENCE 2022
The 28th World Gas Conference (WGC 2022) takes place in Daegu, the energy city of Korea in May 2022.
RUSSIA SEEK REVIEW
2022, January, 20, 15:24:00
ARABIAN GREEN HYDROGEN $5 BLN
Engie plans to create a green hydrogen hub in the UAE and potentially other regions in a deal worth $5 billion, with the first 200 MW green hydrogen and ammonia project being developed in Abu Dhabi.
RUSSIA SEEK REVIEW
2022, January, 20, 15:20:00
INDONESIA'S ELECTRICITY + 3 GW
In 2022, the country is expected to commission 2,950 MW of power capacity and to build 4,632 km of transmission lines.
All Publications »