Gazprom, the Russian gas company, plans to sell off its stakes across North Sea assets. It faces compensation claims of multi-billion dollar value from European gas companies due to its drastic reduction of pipeline gas supply in 2022.
Gazprombank has filed a tender notice stating that the gas giant plans to auction its stakes in North Sea gas exploration and production projects. Bids will start at €344,000,000 ($375,000,000), according to the notice.
The news comes at a time when Ukraine’s Naftogaz Ukrainy is trying to recover $5 billion from Russia in compensation for its loss of oil and gas assets during the Russian seizure of Crimea in 2014.
Gazprom, according to a tender document, has set a minimum of €159m for the North Sea Asset Sale if no one accepts the opening offer.
The company has sold its 50:50 joint-venture with Wintershall Dea, Wintershall Noordzee.
In its annual report, the German company stated that Noordzee’s revenues dropped to €140 millions in 2023 from €444 in 2022, and net income also decreased by a similar amount, falling to €28millions from €112millions in 2022.
Wintershall Noordzee, according to the tender documents’, portfolio includes 33 offshore licenses in the Netherlands (including the UK), Denmark (including the Denmark) and 36 known fields. The largest of these are Sillimanite, and Wingate.
Gazprom has warned prospective bidders to be aware that Wintershall Dea may exercise its pre-emptive rights to buy the stake of the new partner once the auction concludes and the winner is announced.
Gazprom UK, a subsidiary of Gazprom, has a 24 percent stake in the Sillimanite Gas Development, which spans the maritime border between the UK and Netherlands. Wintershall Noordzee, the operator, holds a 43 percent stake.
Gazprom UK is the sole shareholder of Gazprom UK Resource, a British company that holds 20% in the Noordzee operated Wingate gas project located in the UK North Sea.
Gazprom stated that Sillimanite & Wingate will produce an average of 3800 barrels equivalent of oil per day by 2023.
Wintershall Dea’s spokesperson refused to comment on the “rumours” and “speculations” in the market regarding its preemptive rights to buy Gazprom North Sea assets.
Wintershall Dea announced earlier that its 50% share in Noordzee was not included on the list of assets the company had agreed to sell to UK-listed Harbour Energy at the end last year.
We have contacted the Dutch-registered EBN & ONE-Dyas who are minor shareholders in the Sillimanite Project to get their comments on whether they would be interested in purchasing the Gazprom assets.
The Russian company warned that the sale may take a long time to complete if it comes from a company based in a nation that participates in international sanctions against Russia.
Gazprom must then seek approvals from Russian regulators, as well as directly from Russian president Vladimir Putin. The UK and Netherlands will also need to approve the deal.
The deadline for applications to take part in the auction is the end of the month of May 2024. A list of approved bidders will be published by the 3rd of June.
Gazprombank will manage the auction on 6 June. It is exempt from international sanctions, and has permission to work with western financial institutions.