Jan 03 - EU Approves Eni's Buy Of Unit From Finland's Fortum

Source Press Release
Company ENI S.p.A. 
Tags Strategy - Corporate
Date January 23, 2003

The European Union Commission approved the purchase by Italian oil and gas giant Eni SpA of Norwegian exploration and production company Fortum Petroleum, a unit of Finnish energy group Fortum OYJ. The deal is worth $1.1 billion, including $658 million in debt.

The Commission investigated the Italian market as well as southern Germany, where Eni is present through its joint venture in regional gas distributor GVS together with Energie Baden-Wuerttemberg AG , or EnBW. But it concluded that the acquisition wouldn't strengthen Eni's position.

The deal is part of Eni's strategy to focus on its core oil and gas production business. The company also expects to cut costs through synergies. The acquisition bolsters Eni's North Sea output by 14% and its reserves by 17% . Output in Norway will increase by 40%. In terms of production, Eni will add 35,000 barrels of oil equivalent a day to its current daily output of 1.5 million b/d. It will also gain 210 million barrels of oil equivalent in reserves.

Eni, formerly Italy's energy monopoly, is Europe's fourth largest oil and gas company in terms of assets. Fortum is selling the unit to lighten its debt load and focus on its power generation business. Fortum's Norwegian assets include stakes in the Asgard, Brage, Heidrun, Mikkel and Goliath North Sea fields as well as equity in gas pipelines linking the Norwegian coast to Asgard and Heidrun.

Source: EvaluateEnergy® ©2022 EvaluateEnergy Ltd