Statoil Divests Majority of Gassled stake / News / The Foreigner

The Foreigner Statoil Divests Majority of Gassled stake. In an effort to “streamline” its portfolio, the Norwegian energy giant Statoil has agreed to sell the majority of its stake in Gassled, a joint venture that controls Norwegian gas pipelines, to a consortium including Solveig Gas Norway AS, Germany-based insurer Allianz SE and the Abu Dhabi Investment Authority (ADIA) for NOK 17.4 billion. The purchase, which amounts to 24.1 percent of Gassled shares, will leave Statoil with a 5 percent stake in the pipeline partnership. Statoil Executive Vice President Eldar Sætre said that “the divestment is part of our continuous efforts to increase capital efficiency and maximize shareholder value creation.” Statoil reportedly intends to invest the estimated NOK 9 billion in profits from the sale into assets and projects that yield higher rates of return.            Although Gassled provides approximately 100 billion cubic meters of gas, approximately 17 percent of the EU’s annual gas consumption, to other European countries including Belgium, France, Germany and the United Kingdom, activity in European gas markets remained largely unchanged with the news. The apathy can be attributed to the fact that, even though financial firms are gaining ownership in the collective, the Norwegian government will still control the infrastructure and effectiveness of the pipeline.

statoil, gassled



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Statoil Divests Majority of Gassled stake

Published on Wednesday, 8th June, 2011 at 11:45 under the news category, by John Howard-Smith.

In an effort to “streamline” its portfolio, the Norwegian energy giant Statoil has agreed to sell the majority of its stake in Gassled, a joint venture that controls Norwegian gas pipelines, to a consortium including Solveig Gas Norway AS, Germany-based insurer Allianz SE and the Abu Dhabi Investment Authority (ADIA) for NOK 17.4 billion.



The purchase, which amounts to 24.1 percent of Gassled shares, will leave Statoil with a 5 percent stake in the pipeline partnership. Statoil Executive Vice President Eldar Sætre said that “the divestment is part of our continuous efforts to increase capital efficiency and maximize shareholder value creation.” Statoil reportedly intends to invest the estimated NOK 9 billion in profits from the sale into assets and projects that yield higher rates of return.           

Although Gassled provides approximately 100 billion cubic meters of gas, approximately 17 percent of the EU’s annual gas consumption, to other European countries including Belgium, France, Germany and the United Kingdom, activity in European gas markets remained largely unchanged with the news. The apathy can be attributed to the fact that, even though financial firms are gaining ownership in the collective, the Norwegian government will still control the infrastructure and effectiveness of the pipeline.

The divestiture continues a recent trend of exiting the Gassled joint venture. In 2010, ExxonMobil sold its 8 percent stake in the partnership, and the French oil company Total is currently seeking buyers for its 6.43 percent interest.

Transferring Statoil’s ownership to the consortium of buyers will take place retroactively, effectively saying that Statoil divested its shares in Gassled at the beginning of 2011. Highlighting Statoil’s recent shift in focus from traditional energy sources to more “green” and profitable ones, the deal will be official as soon as Norway’s Finance and Petroleum Ministries grant its approval. 

 



Published on Wednesday, 8th June, 2011 at 11:45 under the news category, by John Howard-Smith.

This post has the following tags: statoil, gassled.





  
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