Ineos transaction resolves North Sea Breagh uncertainties

Offshore staff

CALGARY, Canada – Sterling Resources says Ineos Group AG has agreed to acquire interests in various UK North Sea gas fields held by LetterOne Group (L1). 

These include a 70% operated stake in the producing Breagh gas field in the southern UK sector (Sterling 30%).

The purchase brings an end to a period of uncertainty stretching back to September 2014 when RWE AG, the developer of Breagh, announced it was not certain whether it would receive approval from DECC, the UK regulatory body at that time, to close the intended sale of its UK assets to Russian-owned L1.

In March 2015, Britain’s Secretary of State for Energy & Climate Change asked LetterOne to sell the assets.

Jake Ulrich, Sterling’s CEO, said: “The uncertainty over the future ownership of Breagh has adversely impacted both Sterling’s ability to refinance our $180 million of bond debt and the level and number of offers received in our process to sell or merge the company or to sell part of Breagh…

“We are continuing to move forward with a refinancing and will seek better offers from existing bidders, as well as new offers from other potential bidders.”

10/20/2015

 

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