• 1 day Shell Oil Trading Head Steps Down After 29 Years
  • 2 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 2 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 2 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 2 days Venezuela Officially In Default
  • 2 days Iran Prepares To Export LNG To Boost Trade Relations
  • 2 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 2 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 2 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 3 days Rosneft Announces Completion Of World’s Longest Well
  • 3 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 3 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 3 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 3 days Santos Admits It Rejected $7.2B Takeover Bid
  • 3 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 3 days Africa’s Richest Woman Fired From Sonangol
  • 4 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 4 days Russian Hackers Target British Energy Industry
  • 4 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 4 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 4 days Lower Oil Prices Benefit European Refiners
  • 4 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 5 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 5 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 5 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 5 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 5 days OPEC To Recruit New Members To Fight Market Imbalance
  • 5 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 5 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 5 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 6 days GE Considers Selling Baker Hughes Assets
  • 6 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 6 days Saudi Aramco To Invest $300 Billion In Upstream Projects
  • 6 days Aramco To List Shares In Hong Kong ‘For Sure’
  • 6 days BP CEO Sees Venezuela As Oil’s Wildcard
  • 6 days Iran Denies Involvement In Bahrain Oil Pipeline Blast
  • 8 days The Oil Rig Drilling 10 Miles Under The Sea
  • 9 days Baghdad Agrees To Ship Kirkuk Oil To Iran
  • 9 days Another Group Joins Niger Delta Avengers’ Ceasefire Boycott
  • 9 days Italy Looks To Phase Out Coal-Fired Electricity By 2025
The Hidden Cost Of Electric Cars

The Hidden Cost Of Electric Cars

As countries across the globe…

Russian Billionaire Hopes to Buy RWE Oil and Gas Unit

Russian Billionaire Hopes to Buy RWE Oil and Gas Unit

Back in March the German utility RWE announced that it planned to sell off its oil and gas unit, DEA, in order to reduce costs next year as it struggles with lower revenues and higher debt. Amongst some of the interested parties arrives the Russian billionaire Mikhail Fridman, who is looking to invest in diverse energy assets through his L1 Energy investment company.

A source close to the deal told Reuters that “a Fridman-led consortium is preparing to hand in a bid for DEA by the Christmas deadline.”

RWE’s power plants have been suffering this year as operating costs have risen above revenues earned, the German renewable sector has grown more powerful, and its net debts have risen to €30.8 billion ($41.5 billion). It hopes that by offloading DEA it will reduce its overheads and avoid spending the billions of euros needed to be invested in exploration and production.

Fridman received a large payoff after selling the Anglo-Russian oil company TNK-BP to Rosneft earlier in the year for $55 billion, and now plans to invest as much as $20 billion into new energy investments over the next three to five years.

Related article: The Makings of a Petro-State

Reuters reports that DEA could be valued at around €5 billion, with operations in 14 different countries, including Germany, Britain, Norway, and Egypt, employing nearly 1,400 staff, and contributed nearly 11 percent of RWE’s net operating profit last year.

It appears to make a good fit for L1 Energy as the spread of assets around the world offer the ability of large-scale diversification away from Russia.

Other parties interested in buying DEA include; the US equity firm KKR, which has joined with Kuwait Petroleum Corp in order to place a bid for the oil and gas company. Wintershell, a subsidiary of BASF, has also announced its interest in a deal, as have Blackstone and Centrica.

Qatar Petroleum International (QPI) had been very interested, but has recently backed off since Egyptian President Mursi was overthrown. QPI were supporters of Mursi, and DEA no longer poses such an attractive investment as it owns many assets in Egypt.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News