Fortum Sells Omani Assets
Fortum has signed an agreement to sell its 35% interest in the Suneinah concession, Block 9, and associated gas exploration and production rights in Oman to Mitsui & Co. Ltd. and its associated company Mitsui Oil Exploration Co. Ltd. The sale is a result of Fortum's decision to focus on the Nordic energy market and to divest non-core assets.
Fortum expects to realize sales proceeds from the transaction exceeding 180 million euro (including net working capital) and to gain a net book profit of about 70 million euro.
Mitsui and Moeco are acquiring all of the shares of Fortum (E&P) B.V., a wholly owned subsidiary of Fortum Oil and Gas Oy, effective December 31, 2001. The transaction establishes Mitsui and Moeco with a strategic interest in a long-term Omani oil producing property.
The transaction is expected to be completed during the second quarter, pursuant to Omani government approval.