The European Commission (EC) has granted regulatory approval under the Merger Regulation to the proposed acquisition by Norwegian oil company Statoil of a stake in the In Salah joint venture, which is currently controlled by BP and Sonatrach of Algeria.
The transaction does not significantly alter the competitive situation on the European gas market, according to a press release. The expected supplies from the In Salah fields will be a fraction only of the volumes of gas consumed in the EU.
The In Salah joint venture is active in the exploration, development and production of gas. It was created in 1996 by BP and Sonatrach at which time it was examined by the EC and also received regulatory approval. The venture is expected to extract its first gas from the In Salah region, in Southern Algeria, in 2004.
Under a transaction notified to the EC for clearance on November 20, Statoil will acquire half of BP's 49-percent in In Salah, as a result of which Statoil, BP and Sonatrach will jointly control the venture.
The EC also assessed the impact of the transaction on the other markets where the parties are active and concluded that the deal would not lead to any risk of foreclosure or coordination.
Statoil’s entrance into the Algerian market comes after the company’s former Chief Executive Olav Fjell left his post in September. Fjell was accused of bribing Iranian officials while seeking to expand company operations in the Islamic Republic. His resignation was announced shortly after the scandal was published. Allegations against Fjell involve a $15 million deal signed between Statoil and small consultancy firm Horton Investments. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
