May. 15, 2009
Sumitomo Corporation Purchases Interests in the British North Sea through the Joint Purchase of a Netherlands Based Oil and Gas Exploration & Production Company
Sumitomo Corporation (President and CEO: Susumu Kato) announces that it has signed a share purchase agreement (Agreement) for purchasing 100% of the share capital of Netherlands based oil and gas exploration & production company, Oranje-Nassau Energie B.V. (ONE), wholly owned by Wendel S.A. (Wendel) through its 100% subsidiary, Oranje-Nassau Groep. The purchase will be made with consortium, consisting of Dyas UK Limited (wholly owned subsidiary of Dutch company, SHV Holdings N.V.) and ONH B.V. (a Dutch private investment company controlled by Marcel van Poecke). The total value of the transaction is 647 million euro (US$860million), including working capital and other customary adjustments.
ONE currently holds assets in British and Dutch North Sea and Gabon, its core activity area, and Sumitomo Corporation will purchase all of ONE's assets in the British North Sea excluding the Buzzard Field subsequent to the completion of the purchase of the ONE shares. Included in the assets Sumitomo Corporation will purchase are the Elgin/Franklin Field (Operator: TOTAL/Gaz de France), the third largest oil and gas field (reserve based) in the British North Sea, the Wytch Farm Field operated by British Petroleum, and 4 other producing and development fields.
Sumitomo Corporation, with the consortium partners above, had been negotiating to go forward with this transaction after the submission of the bid offer to purchase the shares to ONE, and the Agreement was executed after the board of directors of both ONG and Wendel on May 6, 2009. The transaction will be completed on the 15th of May.
As a result of this transaction, Sumitomo Corporation will hold an estimated additional 7,000 equivalent barrels of oil per day in the British North Sea, and expects long term stable production until the year 2030. Oil and gas exploration and production activities in the British North Sea through its wholly-owned subsidiary, Petro Summit Investment UK are one of the core business areas for Sumitomo Corporation, and therefore this transaction is in line with Sumitomo Corporation's strategy. The purchased assets will constitute the core earnings base of Sumitomo Corporation, and it further intends to actively pursue the acquisition of quality assets and develop exploration and production activity in this area.
Corporate Communications Department,