Gazprom Plans To Auction Off North Sea Gas Assets

Russian gas giant Gazprom will sell stakes in various North Sea assets as it faces multibillion-dollar compensation. Claims from European gas companies for drastically cutting pipeline gas supplies in 2022. The gas giant plans to auction off its stake in a North Sea gas production and also exploration project. With an offer valued at €344 million (US$375 million), according to a tender notice submitted to Gazprombank.

The news comes as Ukrainian company Naftogaz Ukraine seeks to recover $5 billion in compensation awarded. In arbitration last year for the loss of oil and also gas resources in Crimea, conquered by Russia in 2014. It was reported in According to the tender documents, Gazprom has set a minimum price of 159 million euros. However For the sale of its North Sea assets, provided there are no interested parties in the opening offer. The auction includes the company’s shares in exploration and production company Wintershall Nordsee, a 50-50 joint venture with Wintershall Deer.

The German Company

The German company said in its annual report that Nordsee’s sales. Will fall from 444 million euros the previous year to 140 million euros in 2023. While net profit will similarly fall from 112 million euros in 2022. It said that the amount had decreased to 28 million euros. According to the tender documents, Wintershall Nordsee’s portfolio includes participation in 33 offshore licenses in the Netherlands.  UK, and Denmark and includes 36 known oil fields, of which the largest producing oil fields are Sillimanite and Wingate. 

Gazprom warns potential bidders that Wintershall Deer may exercise pre-emption over the acquisition of a new partner’s shares. After the auction is completed and also winners announced that the subsidiary Gazprom International UK. Holds a 24% stake in the Sillimanite gas development. Which straddles the UK-Dutch maritime border, and  Wintershall Nordsee holds a 43% stake in the operator and also It has become. Another subsidiary, Gazprom UK, is the sole shareholder of the British company Gazprom UK Resources. Which owns 20% of the  Wingate gas project in the British North Sea, operated by Nordsee.

Gazprom

Gazprom said Sillimanite and Wingate produced an average of about 3,800 barrels of oil equivalent per day in 2023. A spokesperson for  Wintershall Deer declined to comment on “market rumors and speculation” surrounding the company’s right of first refusal to buy Gazprom’s North Sea assets. Wintershall Deer previously announced that 50% of its Nordsee shares were removed from the list of assets it planned to sell to UK-listed Harbor Energy late last year. Four thousand four hundred forty-four minority shareholders of the Sillimanite project registered with EBN and ONE-Dyas in the Netherlands were contacted for comment on their possible interest in purchasing Gazprom’s assets. 

 Russian companies have warned that the sale could take a significant amount of time to complete if the winning bid goes to a company based in a country that is implicated in international sanctions against Russia and its companies. Gazprom would then need to obtain approval for the transaction from Russian regulators and directly from Russian President Vladimir Putin, the statement said. In addition, regulatory approval must be obtained in the UK and the Netherlands. The applications to participate in the planned auction must be received by the end of May 2024, and the list of approved bidders must be finalized by June 3. The tender, scheduled for June 6, will be led by Gazprombank, which is exempt from international sanctions and allowed to cooperate with Western financial institutions.

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