Sequa Petroleum Ends Wintershall-Tellus Acquisition Deal.
28 December 2015 - Following discussions, German chemical maker BASF's Wintershall subsidiary and UK-based oil and gas company Sequa Petroleum N.V.'s Tellus subsidiary, have agreed not to proceed with the Wintershall-Tellus transaction, which was announced on 18 June, 2015, in the current market environment, the companies said.
On 18 June Wintershall agreed to divest assets in the four non-operated fields Knarr (20%), Veslefrikk (4.5%), Ivar Aasen (6.4615%) and Yme (10%) on the Norwegian continental shelf to Tellus Petroleum AS.
At the same time, Wintershall would reduce its share in the own-operated Maria Development by 15% to 35% and has gained Tellus Petroleum as a further partner to develop this field, for which the plan for development and operation (PDO) was recently submitted.
The package Wintershall was selling to Tellus Petroleum also included equity stakes in seven exploration licenses in the vicinity of the Knarr, Maria and Ivar Aasen fields and in the Barents Sea, as well as ownership interests in the Utsira High Gas Pipeline (3.8769%), the Edvard Grieg Oil Pipeline (2.5846%) and the Knarr Gas Pipeline (20%).
Wintershall said at the time that the agreed purchase price for the transaction was USD 602m.
Tellus said it is evaluating the Ivar Aasen transaction with OMV in the light of the decision not to proceed with the Wintershall-Tellus transaction.
The company said it is progressing with the preparations for financing the Gina Krog transaction with Total, with the transaction planned to close early in 2016.
Sector: Petroleum/Natural Gas/Coal
Target: Wintershall assets in the four non-operated fields Knarr (20%), Veslefrikk (4.5%), Ivar Aasen (6.4615%) and Yme (10%) on the Norwegian continental shelf to Tellus Petroleum AS.
Deal size in USD: 602m
Type: Corporate Acquisition
Buyer advisor: , ,
Comment: Deal nixed by low energy prices
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|Publication:||M & A Navigator|
|Date:||Dec 28, 2015|
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