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    Statoil to Sell Stake in Gassled Joint Venture

Summary

Norway-based Statoil ASA has announced that it has decided to divest a 24.1% direct and indirect stake in Gassled joint venture to Solveig Gas Norway...

by: Ash

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Natural Gas & LNG News, Pipelines

Statoil to Sell Stake in Gassled Joint Venture

Norway-based Statoil ASA has announced that it has decided to divest a 24.1% direct and indirect stake in Gassled joint venture to Solveig Gas Norway AS for a consideration of 17.35 billion Norwegian Kroner, or $3.25 billion.

Following the deal, Statoil will continue to own 5% in Gassled, which owns the integrated gas transportation grid and processing facilities on the Norwegian Continental Shelf. Established in 2003, the joint venture transports Norwegian gas by pipelines from the producing fields to consumers on the European continent and the UK.

Solveig is a holding company, which about 45% owned by Canada Pension Plan Investment Board. In addition, Allianz SE unit Allianz Capital Partners owns a 30% stake and 25% stake is owned by Abu Dhabi Investment Authority subsidiary Infinity Investments SA.

Statoil intends to re-deploy capital into assets and projects that yield higher rates of return. The financial effect of the transfer will be as of January 1.

“This transaction contributes to a further streamlining of Statoil's portfolio. The divestment is part of our continuous efforts to increase capital efficiency and maximize shareholder value creation," Eldar Sætre, Statoil’s executive vice president for Marketing, Processing and Renewable, said in a news release.