Venture Production has agreed to acquire Lundin Petroleum B.V.'s (Lundin) entire 1.8% shareholding in NOGAT B.V. for a cash consideration of €9 million payable at completion.
NOGAT B.V. is a private company incorporated in the Netherlands. It owns the NOGAT pipeline and onshore gas processing terminal at Den Helder. Acquisition of Lundin's interest in these key Dutch infrastructure assets not only brings Venture a tariff income stream but also ensures that future production from Venture's F3-FA, A15a and B17a discoveries will pay a reduced export tariff which will enhance field economics. In addition, alongside other equity gas these fields will enjoy preferred access to capacity in the NOGAT system. The NOGAT pipeline is operated by GDF Suez on behalf of the shareholders of NOGAT B.V.
Completion of the transaction remains subject to pre-emption and regulatory and customary third party approvals. Completion is expected to occur during the third quarter of 2009.
Mike Wagstaff, Chief Executive said, "This transaction will materially enhance the economics of several of our undeveloped Dutch gas discoveries, including the F3-FA development that is already under way. We view NOGAT B.V. as a well-run and efficient business and the NOGAT pipeline is a major part of the Dutch offshore infrastructure. We see this as a modest but valuable step forward in the expansion of Venture's Dutch business."