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, July, 6, 10:59:00
6TH ANNUAL LNG SUMMIT USA
The 6th Edition of Wisdom’s Much Acclaimed Annual LNG Summit Will Be Held Live in Houston - PREPARING THE INDUSTRY FOR THE RISE IN DEMAND FOR LNG
RUSSIA SEEK REVIEW
2022, July, 6, 10:58:00
9TH INTERNATIONAL LNG CONGRESS LNGCON 2023
9th International LNG Congress (LNGCON 2023) 6-7 March, 2023 Link to the Congress website: https://bit.ly/3tXVmr7
RUSSIA SEEK REVIEW
2022, July, 6, 10:55:00
S.KOREAN NUCLEAR POLICY
"it is imperative that new energy policy goals and directions are set so as to better accomplish carbon neutral government projects and the expansion of nuclear power."
RUSSIA SEEK REVIEW
2022, July, 6, 10:50:00
RUSSIAN NUCLEAR FOR ARMENIA
The joint working group was chaired by Armenia’s Deputy Minister of Territorial Administration and Infrastructures, Hakob Vardanyan. The Russian delegation was headed by Viktor Kolesnikov, project manager and Advisor to the President of Rusatom Energy Projects.
RUSSIA SEEK REVIEW
2022, July, 6, 10:45:00
IRANIAN NPP 360 MW
At the moment, the only functioning nuclear power plant in Iran is the first stage of the Bushehr NPP, built with Russian assistance.
RUSSIA SEEK REVIEW
2022, July, 5, 12:35:00
OIL PRICE: BRENT NEAR $113, WTI ABOVE $109
Brent fell by 60 cents, or 0.5%, to $112.89 a barrel, WTI climbed $1.13, or 1.1%, to $109.58 a barrel.
RUSSIA SEEK REVIEW
2022, July, 5, 12:30:00
RUSSIA, INDIA: RELIABLE PARTNERS
Many of our companies, including energy companies, are operating in Indonesia. There is interest in developing the national nuclear power industry.
All Publications »