E.ON may sell its North Sea oil and gas business – Herald

Mark Williamson
Group Business Correspondent

E.ON, the German utility, has said it may sell its UK North Sea business as
the company prepares to focus on renewable energy.

The power giant has announced plans to split in two and spin off most of
its conventional power generation, energy trading and oil and gas
exploration and production businesses.

The company told investors the slimmed down core group will focus on
renewables, distribution networks, and customer solutions .

The decision puts a question mark over the future of the North Sea
exploration and production business E.ON has developed in recent years.

The business has stakes in seven fields off Scotland and seven off England
and exploration interests West of Shetland.

The unit has a base in Aberdeen and employs 150 people in the UK.

Announcing plans for a new corporate strategy, E.ON said before
implementing the new structure in 2016 the company will conduct a strategic
review of its exploration and production business in the North Sea.

Asked if the review could result in E.ON selling the UK North Sea
portfolio, a spokesman for the group said: ??We intend to evaluate the
strategic benefits ?¦ of the North Sea E&P business as part of New Company
compared to other options including for example a sale of the business.??

The spokesman said the long-term prospects for the E&P sector remain very
strong and E.ON??s unit has established a solid position.

However, the sharp fall in oil prices since June may make it harder for
firms to sell oil and gas assets.