Sequa Calls Off Purchase of Norway Offshore Assets from Wintershall
OSLO, Dec 22 (Reuters) - Sequa Petroleum has called off a planned $602 million purchase of Norwegian offshore field interests from Wintershall, the oil and gas subsidiary of BASF, citing a poor market environment.
Sequa had agreed in June to buy, via Oslo-based Tellus Petroleum Invest A/S, interests in five fields -- 20 percent of Knarr, 15 percent of Maria, 10 percent of Yme, 6.5 percent of Ivar Aasen and 4.5 percent of Veslefrikk.
"I will not point to a specific factor, but the market situation is challenging right now for oil companies," Tellus Petroleum Chief Executive Fridtjof Jebsen told Reuters on Tuesday.
Crude prices are down nearly 70 percent over the past 18 months, leading companies to cut jobs, projects and costs to protect cash reserves.
Wintershall said in a statement it agreed to a request from Tellus Petroleum to be released from its obligations under the sales agreement but did not provide further details.
Sequa also said in light of the cancellation of its deal with Wintershall it was re-considering an agreement to buy a 0.6 percent stake in the Ivar Aasen field from Austria's OMV for 45 million Norwegian crowns ($5.2 million).
It is however pushing ahead with its purchase of a stake in the Gina Krog oilfield it agreed to buy from Total for 1.4 billion Norwegian crowns ($161 million) in October, it said, adding that it expected the transaction to close in early 2016.
($1 = 8.6926 Norwegian crowns) (Reporting by Gwladys Fouche and Nerijus Adomaitis; Additonal reporting by Maria Sheahan in Frankfurt. Editing by Jane Merriman)
WHAT DO YOU THINK?
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.
- Hoegh LNG: Pakistan LNG Import Project Consortium Folds (Nov 16)
- France's Total Buys Engie's LNG Business For $1.5B (Nov 08)
- Report: Quarter Of Oil Refineries Risk Closure Under Climate Goals (Nov 02)
Company: OMV more info
- OMV Flags Higher 3Q Margins, Kurdistan Windfall (Oct 13)
- Gas Pipeline Through Central Europe to Go Ahead As Planned -Romania (Sep 28)
- Austria's OMV Moves Workers In Tunisia Over Gas Field Protests (May 04)
Company: Wintershall more info
Operates 3 Offshore Rigs
- Libya's NOC, Wintershall Strike Interim Deal To Resume Output (Jun 13)
- BASF Sees Role of Oil and Gas Unit Declining Further (May 12)
- Norway Awards 56 Oil And Gas Licences In Mature Areas (Jan 17)
Company: Tellus Resources Ltd. more info
- Sequa Calls Off Purchase of Norway Offshore Assets from Wintershall (Dec 22)
- Tellus, Senex Amend Latter's Farmin Agreement for 3 PRLs in Cooper Basin (Dec 26)
- Cooper Basin JV to Undertake Seismic in 3 SA's Petroleum Retention Licenses (Oct 20)