Nuon buys ConocoPhillips's stake in 35 gas field's through acquisition of Burlington Resources

12 June 2008

In a deal valued at $739 million, the second-largest power utility in the Netherlands, Nuon NV, has announced that it is acquiring the entire shareholding in Burlington Resources Nederland BV, which owns the Dutch North Sea assets of ConocoPhillips.

Nuon, which reported revenues of 5.7-billion euro in 2007,  produces, transports and delivers electricity, gas, heating and cooling, and engages in energy trading in the major international markets.

With crude oil trades having set record levels, oil majors like Royal Dutch Shell and Exxon Mobil  have been divesting their smaller operations in the North Sea, which has the highest operating costs, in favour of exploration, production and refining and focussing on emerging oil exploration regions of West Africa and the Caspian.

The purchase is effective from 1 January 2008 and marks the entry of Amsterdam-based Nuon in owning natural-gas reserves as Burlington's share in 35 gas fields in the North Sea as well as gas pipelines and processing facilities will now come under  Nuon's ownership, complementing its strategy of diversifying and strengthening its gas sourcing.

Twentyeight of the 35 fields are in the joint development area in the North Sea that is operated by the Shell - Exxon Mobil  venture, NAM, and yield around two-thirds of Burlington's production of 34 million cubic feet a day. All Burlington producing fields are connected to the Dutch gas grid.

In addition to the 35 fields, Burlington holds interests in the Westgastransport pipeline and pipeline extension,  with gas landing at the onshore Den Helder facility with HiCal and LoCal gas processing plants and the joint development area LoCal pipeline. The assets are operated either by NAM or by Wintershall.