UPDATE 1-Suncor to make about $500 mln in Dutch sale -source
* Decision expected by the end of the month -source
* Vermilion Energy Trust in contention -sources
* Suncor shares pare losses on news
By Greg Roumeliotis and Catherine Hornby
AMSTERDAM, May 28 (Reuters) - Suncor Energy Inc (SU.TO), Canada's biggest oil and gas company, expects to raise close to $500 million from the sale of its Dutch subsidiary, to be decided by the end of June, a source close to the company said.
Since completing the acquisition of rival oil producer Petro-Canada in August, the company has been selling off surplus assets, raising C$1.5 billion to date, with further sales expected to bring in as much as C$2.5 billion more. [ID:nN03213638]
Vermilion Energy Trust VET_u.TO is one of those in contention for the Dutch assets, which account for approximately 70 percent of total Dutch oil production, other sources familiar with the process said.
However, the same sources added that other bidders were vying for the assets, including utilities and energy trading houses. A Vermilion spokesman said the company was looking at the assets.
A spokeswoman for Petro-Canada Netherlands declined to comment on Friday but said she expected to be able to say more in a month. Scotia Waterous is advising Suncor on the sale.
Suncor shares reversed a falling trend and jumped by about C$0.30 on the news and were trading at C$32.38 at 1613 GMT. Vermilion shares were down C$0.46 at C$33.51.
OIL AND GAS ASSETS
Petro-Canada Netherlands has interests in eight operated and 13 non-operated North Sea offshore production and exploration licences, with the non-operated licences primarily containing gas assets.
In 2009, it produced 14,600 barrels of oil equivalent per day (boe/d). The source close to the company said it was reasonable to assume a valuation between $30,000 and $50,000 per boe/d.
"Given the maturity of the assets, I would expect the price to be closer to $30,000 per boed, and the total valuation close to $500 million. But this is a very well run and organised business," the source said.
Petro-Canada Netherlands also has a few onshore assets, including a 12 percent stake in one of Europe's largest gas storage projects, which is located in Bergemeer, north of Amsterdam.
Reuters reported in September that Dutch oil and gas company Dyas was also looking to sell its stake in the Bergemeer project, which is led by Abu Dhabi National Energy Company (TAQA) TAQA.AD and where Gazprom is also participating. (Editing by Will Waterman)
- Tweet this
- Share this
- Digg this