Russia’s Fridman enters Norwegian Continental Shelf / News / The Foreigner

The Foreigner Russia’s Fridman enters Norwegian Continental Shelf. As sanctions against Russia continue, Norway’s Petroleum and Energy Ministry granted the Russian oligarch Mikhail Fridman permission for hydrocarbon operations on the Norwegian Continental Shelf, reports say. Norwegian officials approved company RWE Dea Norge’s continued NCS licence ownership on 27th June this year, writes state-owned broadcaster NRK, Wednesday. This happened after LetterOne (L1), a privately owned Luxembourg-based global investment group that Mr Fridman established with partner German Khan, announced in March that it had reached a deal with German company RWE to buy its oil and gas arm RWE Dea. A subsidiary of this last company own's RWE Dea Norge, according to the Ministry of Petroleum and Energy.

oil, gas, russia, norway, rosneft, rwe, statoil, ncs



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Russia’s Fridman enters Norwegian Continental Shelf

Published on Wednesday, 22nd October, 2014 at 12:08 under the news category, by Michael Sandelson   .
Last Updated on 24th October 2014 at 01:05.

As sanctions against Russia continue, Norway’s Petroleum and Energy Ministry granted the Russian oligarch Mikhail Fridman permission for hydrocarbon operations on the Norwegian Continental Shelf, reports say.



Norwegian officials approved company RWE Dea Norge’s continued NCS licence ownership on 27th June this year, writes state-owned broadcaster NRK, Wednesday.

This happened after LetterOne (L1), a privately owned Luxembourg-based global investment group that Mr Fridman established with partner German Khan, announced in March that it had reached a deal with German company RWE to buy its oil and gas arm RWE Dea. A subsidiary of this last company own's RWE Dea Norge, according to the Ministry of Petroleum and Energy.

Mr Fridman and Mr Khan set up the L1 Group in order to invest some of the roughly EUR 11.03bn proceeds (USD 14bn at today’s ROE) from their sale of their holdings in Russian oil producer TNK-BP to Rosneft in 2013. The intended L1-RWE Dea transaction was valued at about EUR 5.1bn (USD 7.1bn).

Russian oligarch Mr Fridman already owns 30 per cent of the licence in the Alta prospect, located in the Barents Sea.

L1’s announced acquisition of previously German-owned firm RWE Dea meant Mr Fridman became the licensee of 33 further licences on the NCS, as well as gaining control of seven operating companies.

Mr Fridman’s other posts include being on the board of telecommunications provider VimpelCom together with CEO of Norwegian telecommunications provider Jon Fredrik Baksaas.

RWE Dea, which has been given permission to explore for oil and gas off the Canary Islands in a consortium led by Spanish company Repsol, also pumps oil and natural gas in the UK, Germany, Denmark and Egypt in addition to Norway.

Britain blocked the Russian tycoon’s some EUR 5bn (USD 6.35bn) bid to acquire five gas fields in the North Sea last week. The UK and EU have put embargoes against Russia in place due to the Ukraine conflict.

Russia’s fourth-richest man Mr Fridman is not on the list of those subject to the sanctions, but they are also hitting private Russian companies not connected to President Vladimir Putin’s inner circle.

Sources close to the L1-RWE Dea deal say that it could collapse, Britain’s The Financial Times reports.

The German government cleared the transaction in August, but parent company RWE AG said in September that it was still waiting for “a comfort letter” from the British Government.

The document from the Department of Energy and Climate Change (DETCC) is a prerequisite for closing the deal – effectively meaning that the government has no objections to it.

Like with the Norwegian Ministry of Petroleum and Energy’s 27th June letter concerning RWE Dea Norge and Norway, this type of document is required when transferring British oil and gas production licences to a new owner. UK Energy Secretary Ed Davey was reportedly “not minded” to issue such a letter in light of the embargoes against Russia, however.

The Norwegian Petroleum and Energy Ministry would not remark on whether Mikhail Fridman’s ingress onto the Norwegian Continental Shelf was problematic or not, reports NRK, Wednesday.

Officials refer to their letter. The Ministry of Foreign Affairs refers back to the Ministry of Petroleum and Energy regarding the decision and the sanctions.

"The restrictive measures concern activities in Russia, and are not relevant to activities on the Norwegian Continental Shelf," Ministry of Petroleum and Energy officials tell The Foreigner in an email.

Norway, home of state-controlled (67 per cent) energy giant Statoil, decided to follow the sanctions imposed by the EU and UK.




Published on Wednesday, 22nd October, 2014 at 12:08 under the news category, by Michael Sandelson   .
Last updated on 24th October 2014 at 01:05.

This post has the following tags: oil, gas, russia, norway, rosneft, rwe, statoil, ncs.





  
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