CMS Energy Corp. announced last Monday it has closed a sale of the stock of CMS Oil and Gas Co. and its affiliate, CMS Oil and Gas (International), for $167 million to Perenco, a privately-held European exploration and production company, putting CMS close to its goal of raising $2.9 billion through asset sales.

The transaction is part of a previously announced sale of all of CMS Energy’s exploration and production business for $232 million (see NGI, July 29). Definitive agreements for sale of the $65 million balance cover stock and assets of CMS Oil and Gas affiliates with properties in Colombia and Venezuela. Closings of those sales, which are pending government approvals, are expected by early October.

“Net proceeds from this sale were used to retire the remaining balance on a $150 million CMS Enterprises term loan due in December 2002,” said CMS Energy executive vice president and CFO Tom Webb. “With this sale, CMS Energy has achieved $2.6 billion of asset optimization cash proceeds toward our $2.9 billion goal.” The company has also offered for possible sale its entire domestic pipeline and field services businesses, including Panhandle Eastern and Trunkline pipelines, the Lake Charles, LA LNG terminal, its midstream assets, and one-third ownership interest in Guardian Pipeline, worth a combined net value of $1.4 billion (see NGI, Aug. 12).

Perenco is buying all of the Houston-based CMS Oil and Gas properties except those in Colombia. Perenco, in the energy business since 1973, and in petroleum exploration and production since 1985, has headquarters in London, Paris and the Bahamas. Perenco currently is active in Gabon, Cameroon, Democratic Republic of Congo, Republic of Congo, Colombia, Venezuela, Turkey and the United States — having acquired properties in Kansas, Oklahoma and California in 1985.

©Copyright 2002 Intelligence Press Inc. Allrights reserved. The preceding news report may not be republishedor redistributed, in whole or in part, in any form, without priorwritten consent of Intelligence Press, Inc.