Lasmo plc is making headway in its effort to divest certain assets acquired via merger with Ultramar plc as well as some of its noncore assets.
Lasmo formed Ultramar Corp. as a vehicle to dispose of most of the refining/marketing assets of Ultramar plc. Lasmo acquired Ultramar plc via merger late last year (OGJ, Dec. 23, 1991, Newsletter).
Lasmo is considering offering 100% of the shares of Ultramar Corp. via an initial public offering in the U.S. and Canada. Lasmo said it expects net proceeds from the offering and a related debt offering would be $950 million-$1.05 billion.
The company also expects net proceeds of about $100 million from the future sale of certain downstream assets that were part of Ultramar's business but won't be included in the Ultramar spinoff. It earlier realized $125 million from sale of Ultramar's shipping business.
Lasmo said filings with U.S. and Canadian securities authorities are in preliminary stages, and the company continues to review all options for disposal of the businesses, including an exchange.
Ultramar downstream assets include a 90,000 b/d high conversion refinery in Los Angeles, a 120,000 b/d refinery near Quebec City, a 22,000 b/d refinery near Halifax and a wholesale and retail marketing network that includes 390 outlets in California and 1,480 outlets in eastern Canada.
UPSTREAM ASSETS SOLD
Meantime, Lasmo sold its upstream interests in the U.S. to Torch Energy Advisors Inc. and other purchasers for about $72 million. Included are interests in Bright Star gas gathering system in' East Texas and the Willow Bayou gas discovery, formerly Miami Fee, in Louisiana (OGJ, Nov. 4, 1991, p. 87). Lasmo's remaining U.S. interests will be managed from the office of Ultramar Oil & Gas Ltd., Houston.
And all of Ultramar Australia Inc.'s Australian interests have been purchased by Sagasco Resources Ltd. for $8 million (Australian). The sale includes Katnook gas field and exploration permit in South Australia's Otway basin.
Lasmo said its Lasmo Oil (Australia) Ltd. unit will concentrate exploration efforts off Western Australia, particularly on the Northwest Shelf.
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