News story

Secretary of State’s decision on RWE Letter One transaction

This news article was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

Consideration of the proposed acquisition by LetterOne of North Sea oil and gas fields owned by RWE Dea has concluded.

The Department has been considering the proposed acquisition by LetterOne of twelve producing North Sea oil and gas fields currently owned by RWE Dea. The Secretary of State for the Department of Energy and Climate Change Ed Davey is responsible for ensuring the continued and safe production of the UK’s petroleum resources. In the discharge of these regulatory responsibilities, the Secretary of State has raised concerns with the respective companies about the effect that possible future sanctions imposed on LetterOne may have on the continued operation of these twelve fields and the serious health and safety and environmental risks that may result.

The companies have made a proposal designed to alleviate those concerns. After careful consideration the Secretary of State has decided that the proposal does not adequately and surely alleviate those concerns and has notified the companies involved that if the proposed acquisition were to proceed in its current form, he would be minded to require the companies to arrange for a further sale to a suitable third party.