A relatively unknown name gained prominence in the North Sea today - Nuon, a Dutch Company and one of the largest energy distributors in Europe acquired ConocoPhillips upstream Dutch operating unit. Nuon has interests in energy projects and utilities, primarily in the Netherlands as well as in Belgium and Germany , including power plants with more than 3,440 MW of capacity.
Nuon acquired the Dutch unit of ConocoPhillips for $739 million. The acquisition gives Nuon a working interest in 35 Dutch gas fields, pipelines and processing facilities. Current net production is about 34mmcfd, mostly in the joint development area operated by NAM, the Exxon/Shell joint venture. The non-operated portfolio is ideal for a utility company without upstream experience but with considerable need for access to molecules of gas.
This announcement follows the previous days news of the sale by Tullow Oil of its 51% stake in the Hewett area gas fields and associated infrastructure to ENI for $420MM. Net production is currently 12mmcfd demonstrating the relatively high premium paid by ENI compared to Nuon.
In our opinion a 'land grab' of gas assets and particularly gas infrastructure is starting in the North Sea as gas may displace coal as a clean fuel for generating electricity to power a new generation of hybrid and electric automobiles in Europe in the coming years. Watch this space for more deals, possibly from Middle Eastern energy and Infrastructure funds as well.