Saudi businessman Sheik Mohammed Al-Amoudi has purchased Sweden's largest oil company, OK Petroleum AB, Stockholm, for 5.9 billion kroner ($750 million).
The purchase, engineered by Corral Petroleum Holdings AB, Stockholm, was from a group of Swedish Cooperative Union & Wholesale Society 52%, Swedish government 24%, and Finland's Neste Oy 24%.
"Our intention is that OK Petroleum should grow within its present area of business activities inside Sweden as well as in northern Europe," said Ghazi Habib, Corral chief executive appointed to the OK board.
"Already the company has a short term supply agreement with Saudi Aramco for crude oil. We intend to build further upon and develop this relationship. Strategic investments in the refineries in Lyeskil and Gothenburg will be studied closely to provide greater flexibility and reduce dependence on expensive North Sea oil."
OK said the message from the new owner is that business will continue as normal. Al-Amoudi is thought to be interested in OK's proximity to eastern European markets and considering strategic investment there.
OK is currently involved in exploration in Lithuania and plans to enter the retail market in Poland.
Major assets include the OK operated 106,000 b/d Gothenburg refinery and a stake in the 200,000 b/d Lyeskil refinery, plus 650 service stations in Sweden. OK claims annual sales of 19 billion Swedish kroner ($2.4 billion), of which more than 50%, consists of exports.
The deal is said to involve the buyer taking over OK's 3.6 billion Swedish kroner ($460 million) long term debt.
