Finance & Investing
News Services
Newsletters
Get free industry updates via email.
Daily News
Weekly News
Equipment Updates
Weekly Job Register
Monthly Event Guide
Our privacy
pledge.


advertisement

Fortune Oil Aims to Sell Chinese Gas Assets for $400M

change text size

London-listed Fortune Oil disclosed Monday that it is seeking to sell its natural gas business to Hong Kong's China Gas for a total consideration of up to $400 million.

In its statement, Fortune detailed that the proposed deal is for $200 million in cash and a form of deferred consideration. The two options being considered for the deferred consideration is a further payment of $200 million or 250 million China Gas shares.

Fortune estimated that net proceeds from the transaction will be around $195.3 million. The company intends to use the proceeds to pare down some debt.

Fortune's natural gas business in China includes a 25 percent stake in the Liulin block; a CBM field that stretches across 71 square miles (183 square kilometers). The company disclosed in September that gas production from the block exceeded one million standard cubic feet per day.

Fortune also owns gas pipeline infrastructure covering three major municipalities and seven provinces, as well as natural gas and liquefied natural gas operations with downstream retailing to end-users.

Fortune is aiming to submit its Overall Development Plan (ODP) pertaining to the Liulin block for approval in 2013. An ODP approval is the regulatory green light that a foreign company needs to gain, in order to move its project from the exploration phase to the production phase.

At present, privately-held Asian Asian American Gas and Hong Kong-listed Sino Oil and Gas Holdings are the only two foreign companies that have gained ODP approvals.
 



Have a news tip? Share it with Rigzone!
Email news@rigzone.com

WHAT DO YOU THINK?

Post a Comment Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.


More from this Author
Rigzone Staff
e-mail us at news@rigzone.com
 -  CNOOC Posts 6.8% Rise in Net Productio... (Aug 29)
 -  Ruspetro Plans a Second Horizontal Wel... (Aug 29)
 -  SBI Offshore Negotiates with ME-Chines... (Aug 27)
 -  Shell Makes Gas Find at Marjoram-1 Wel... (Aug 26)
 -  Hibiscus Clears Australian FIRB's Hurd... (Aug 22)
Most Popular Articles
From the Career Center
Jobs that may interest you
Tax Adviser, US Downstream Advice
Expertise: Accounting or Finance, Legal
Location: Houston, TX
 
Project Manager
Expertise: Project Management
Location: Convent, LA
 
Project Manager
Expertise: Project Management
Location: Convent, LA
 
search for more jobs