Eni SPA agreed to buy French power group GDF Suez’s 22.5% interest in a joint venture between GDF Suez and Total E&P UK Ltd. The joint venture, Elgin Franklin Oil & Gas Ltd., holds a 46.2% stake in Elgin-Franklin fields in UK’s North Sea (OGJ Online, Nov. 30. 2010).
Through this acquisition, Eni will obtain a 10.4% indirect participation in Elgin-Franklin gas-condensate fields for €590 million. Subject to certain conditions, Eni’s acquisition from GDF Suez is expected to close by yearend.
Before the announcement with GDF Suez, Eni already held 21.8% interest in Elgin-Franklin fields.
The acquisition provides Eni with short- and long-term production benefits from UK North Sea assets already are well known to the company. During 2009, Eni produced 104,000 boed from UK North Sea operations.
Paula Dittrick has covered oil and gas from Houston for more than 20 years. Starting in May 2007, she developed a health, safety, and environment beat for Oil & Gas Journal. Dittrick is familiar with the industry’s financial aspects. She also monitors issues associated with carbon sequestration and renewable energy.
Dittrick joined OGJ in February 2001. Previously, she worked for Dow Jones and United Press International. She began writing about oil and gas as UPI’s West Texas bureau chief during the 1980s. She earned a Bachelor’s of Science degree in journalism from the University of Nebraska in 1974.
