Zurich, Switzerland-based ABB is selling its Lummus Global business to Chicago Bridge & Iron Co. (CB&I) for $950 million, the company said. Lummus provides engineering, procurement and construction management services to the upstream and downstream oil and gas, petrochemical and refining industries. The sale, which is subject to regulatory and CB&I shareholder approval, is intended to further focus ABB on its core business in power automation technology, the company said. Netherlands-based CB&I will purchase the entire Lummus Global business, which employs about 2,400 and had reported revenues of $988 million in 2006. ABB’s automation and power businesses remain committed to the oil and gas sector, the company said. In connection with the divestment of Lummus, ABB said it has discovered certain suspect payments in a number of countries. ABB reported these suspected payments to the U.S. Department of Justice and the Securities and Exchange Commission, and is cooperating fully with the authorities, while continuing its internal investigations and compliance reviews. ABB said it retains liability for potential fines and penalties.
Encore Acquisition Co.‘s master limited partnership (MLP), which was created earlier this year to acquire domestic onshore oil and gas assets, will launch a public offering to raise about $127 million, or $20-22/unit, according to a filing with the Securities and Exchange Commission. Fort Worth, TX-based Encore Acquisition launched Encore Energy Partners LP in February to acquire and develop mature U.S. assets, most of which are located in the Elk Basin of Wyoming and Montana and the Permian Basin in West Texas. In 2Q2007, Encore Acquisition’s average production was 41,384 boe/d, compared with 30,867 boe/d in 2Q2006. Production is 69% weighted to oil, and 86% of its assets are proved developed. Following the public offering, Encore Acquisition and its affiliates will own the majority of the MLP’s interest. Encore Energy plans to use the proceeds to repay debt. It will be listed on the New York Stock Exchange under the symbol “ENP.”
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