UK Ministers Study Gazprom’s North Sea Assets Deal
Published in Oil Industry News on Tuesday, 8 September 2015
Gazprom is buying 50pc of the North Sea business of BASF subsidiary Wintershall
Ministers are to study Gazprom’s deal with BASF that hands the Russian firm assets in the North Sea.
Gazprom is buying 50pc of the North Sea business of BASF subsidiary Wintershall. However, it has yet to gain a “letter of comfort” from the Department of Energy and Climate Change.
Such a letter would give Gazprom a basis to gain control of the assets without objections from the UK government. However, the company could face problems if it does not receive one.
“We will examine the detail of this deal to consider its implications, as we do for any deal involving assets within British waters,” the department said.
BASF is reviving the planned asset swap with Gazprom after it was called off last December. The pair have agreed to complete the deal by the end of this year.
Despite gaining European Commission clearance for the tie-up at the end of last year, the deal has drawn political attention.
Amber Rudd, who was appointed Secretary of State for Energy and Climate Change in May, will ultimately decide on how closely to study the deal.
Just five months ago, her predecessor, Ed Davey, ordered Russian investment vehicle LetterOne to sell North Sea petroleum licences amid concerns over the UK’s energy security.
It had acquired the licences earlier this year as part of a €5bn (£3.6bn) deal to buy RWE Dea.
President Vladimir Putin has repeatedly threatened to cut off gas supplies to Europe in retaliation for his ongoing dispute with the West over eastern Ukraine.
Mr Davey was understood to have been concerned about the possible impact on North Sea oil production that could arise from a potential tightening of economic sanctions.
Source: www.telegraph.co.uk
