ESSEN (dpa-AFX) - The UK government said Saturday that it has decided not to approve the sale of 12 British North Sea oil and gas fields from the German utility RWE Dea to the Luxemburg-based LetterOne group, which is owned by Russian billionaire Mikhail Fridman.
U.K. Energy Secretary Ed Davey said in a statement that if RWE's (RWEOY.PK) sale of its oil-and-gas arm, Dea, to Fridman's LetterOne Group proceeded in its current form, he would be minded to require the companies to arrange for a further sale to a third party.
'The secretary of state has raised concerns with the respective companies about the effect that possible future sanctions imposed on LetterOne may have on the continued operation of these 12 fields and the serious health and safety and environmental risks that may result,' Mr. Davey said.
The Wall Street Journal reported Friday that LetterOne and RWE intended to close the sale on Monday, with or without U.K. approval. The Dea deal has all other relevant approvals for assets in Norway, Germany and Denmark and licenses in countries including Algeria, Guyana and Turkmenistan. It produced about 100,000 barrels of oil equivalent a day. LetterOne declined to comment. An RWE spokeswoman said the company is still planning to close the Dea deal at the beginning of March.
Copyright RTT News/dpa-AFX