Two U.S. energy giants with divergent approaches to overseasinvestments cut a deal announced Tuesday with Dominion Resources,Inc., continuing to sell off its foreign investments and SempraEnergy continuing to expand its plays out of the country. Semprapaid $145 million in cash for Dominion’s 21.5% interest in holdingcompanies for natural gas distribution companies in central andsouthern Argentina and a 25% interest in the parent company for aBuenos Aires electric utility.

San Diego, CA-based Sempra increases its share of the two gasproperties to 43% and added the electricity ownership in a countryin which it has held energy stakes for the past five years.Richmond, VA-based Dominion acquired the interests in the Argentinegas and electric utilities when it bought Consolidated Natural GasCo. in January 2000.

Dominion Resources’ CEO Thomas Capps noted that this deal”completes our exit from Latin America and further concentrates ourresources on (U.S.) expansion efforts in the Midwest, Northeast andMid-Atlantic regions.” Sempra, on the other hand, “effectivelydoubled” its gas utility stake in Argentina, according to DonFelsinger, chairman of Sempra Energy International.

The sale does not require any U.S. approvals, but it willrequire approval by anti-trust authorities in Argentina. Thecompanies said they expect that process to be completed this fall.

Richard Nemec, Los Angeles

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