Germany's DEA buying E.ON Norway oil, gas business for $1.6B

AP News
|
Posted: Oct 14, 2015 6:19 AM

BERLIN (AP) — German-based oil and gas firm DEA Deutsche Erdoel AG says it plans to buy utility E.ON's Norwegian oil and gas business in a deal worth $1.6 billion.

DEA, a former unit of energy company RWE that now belongs to an international investment arm of Russian billionaire Mikhail Fridman's Alfa Group, said Wednesday that the deal will more than double its current production in Norway. It is subject to approval by Norwegian authorities and the European Commission.

DEA supervisory board chairman Lord Browne said the planned acquisition is the first step in the company's new growth strategy. He said that it "has access to substantial financial resources" and he expects it to make more investments in the Norwegian continental shelf and other core areas.