Dominion to Sell Offshore E&P Ops for $4.7B

Wednesday, May 02, 2007
Dominion agreed to sell its offshore natural gas and oil exploration and production operations to Eni Petroleum Co. Inc., a subsidiary of Italian energy company Eni, for approximately $4.76 billion.

These operations include approximately 967 billion cubic feet equivalent of proved natural gas and oil reserves in the Gulf of Mexico shelf and deep water as of Dec. 31, 2006, with 2006 average daily production of approximately 503 million cubic feet equivalent.

"Today’s announcement is a significant step in Dominion’s previously announced strategic plan to refocus on the power generation and energy distribution, transmission, storage and retail businesses," said Chairman, President and CEO Thomas F. Farrell II. "Dominion has been extremely successful in the E&P business, but that success has not been fully reflected in our share price. Our plan is designed to realize the value of these assets for our shareholders."

The company continues to pursue the disposition of its U.S. onshore E&P operations, except those in the Appalachian Basin, as well as its E&P operations in western Canada. It expects to make further announcements in the near future.

The sale of the offshore E&P assets to Eni is expected to close by early July 2007, subject to customary closing conditions and adjustments. Dominion announced last November that it would pursue the sale of most of its E&P assets as part of a strategic refocusing. The move is designed to enhance the long-term value of the company by realigning Dominion’s operations and risk profile more closely with the company’s peer investment group of utilities.

Dominion plans to retain its low-risk E&P operations in the Appalachian Basin because of their value to the company’s natural gas pipeline, storage and gathering businesses. The Appalachian properties account for approximately 15 percent of proved reserves and 8 percent of Dominion average daily production as of Dec. 31, 2006.

Production from these reserves is expected to contribute less than 5 percent of Dominion’s future consolidated operating earnings. Dominion is being advised in the sale by the investment banking firms of JPMorgan, Lehman Brothers and Juniper Advisory LP. BakerBotts LLP and McGuireWoods LLP are the company’s legal advisers for the sale.

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

U.S. Drillers Cut Rigs to Lowest since August

Energy companies have reduced the number of rigs drilling for oil in the United States to the lowest since August, shifting more rigs in favor of natural gas as crude prices dive,

Equinox Class Scrubber Systems Receive Certification

Algoma Central Corporation (“Algoma”), the largest Canadian shipowner and operator of domestic Great Lakes vessels announces that it has received all requisite

MARAD Tests Alternative Power for Ships

The Maritime Administration (MARAD) is testing state-of-the-art, environmentally efficient technology onboard the Training Ship (TS) Kennedy.   The National Defense

Offshore

U.S. Drillers Cut Rigs to Lowest since August

Energy companies have reduced the number of rigs drilling for oil in the United States to the lowest since August, shifting more rigs in favor of natural gas as crude prices dive,

Arctic Oil: Bourbon to Enter Arctic Market in 2016

Bourbon plans to enter the growing Arctic Offshore market in 2016 with a new Anchor Handling Tug Supply (AHTS) vessel built by the Vard shipyard. This AHTS (Anchor

Total CEO: EU Must Fight US Crude Export Law

First major public appearance of new Total head; he challenges European politicians to fight US ban. The new head of French energy major Total challenged Europe to fight Washington over the U.

 
 
Maritime Security Maritime Standards Navigation Pipelines Pod Propulsion Port Authority Salvage Ship Electronics Ship Simulators Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1481 sec (7 req/sec)