Kingdom

In an effort to pay down debt, streamline operations and benefit from the advantageous tax regime in the United Kingdom, Kerr-McGee Corp. sold all of its North Sea assets, including 231 million boe of proved reserves, Monday for US$3.5 billion in cash, the assumption of $182 million in abandonment obligations and another $175 million in derivative liabilities.

Warren Buffett’s MidAmerican Energy Holdings Co. on Tuesday said it reached a definitive agreement with United Kingdom-based ScottishPower to buy electric affiliate PacifiCorp for $5.1 billion in cash, plus the assumption of $4.3 billion of debt. MidAmerican already has two major interstate natural gas pipelines in addition to its midwestern utility operations.

Apache Corp. has closed the Gulf of Mexico portion of its $1.3 billion acquisition of producing properties fomerly owned by BP. The United Kingdom North Sea portion of the transaction is expected to close within the next two months. Apache paid an adjusted price of $509 million for the Gulf of Mexico properties, which have estimated proved reserves of 72.2 million boe. The price was adjusted from the originally announced $670 million to account for the exercise of preferential rights by third parties involved in some of the properties (a reduction of $70 million), production since the Jan. 1, 2003, effective date of the transaction, and other minor adjustments. The Gulf of Mexico properties are located offshore Texas and Louisiana in areas where Apache has substantial existing operations. Net current production from the acquired properties, after adjustments, is 200 MMcf/d and 19,000 bbl/d of liquids.

Dynegy Inc. has let go of another asset in its bid to ensure liquidity, selling Hornsea Ltd. natural gas storage facility in the United Kingdom to SSE Energy Supply Ltd. for about $200 million (130 million pounds). The Hornsea facility was one of several assets purchased last year from BG Storage Ltd. for a total of $600 million, and had been considered a key part of its European growth plan just before the energy marketplace fell apart (see Daily GPI, Nov. 29, 2001).

In a company meeting in Houston last Thursday, Enron CEO Stephen Cooper revealed that the company owes creditors at least $11 billion more than it estimated in its original bankruptcy filing, but the figure could go as high as $50 billion more. Enron listed $31.2 billion in debts when it filed for bankruptcy in December.

Dynegy Inc. has completed its acquisition of BG Storage Ltd. and its natural gas storage facilities and related assets in the United Kingdom, establishing the cornerstone of the Houston-based company’s European physical energy convergence presence. The deal includes 30 wells with five offshore platforms, nine salt caverns, about 19 miles of pipelines and an onshore natural gas processing terminal.

Dynegy Inc. said Tuesday it has expanded its e-commerce site, Dynegydirect.com, into the United Kingdom energy market, reflecting the “increasing demand for Dynegy’s products in Europe as well as the successful launch…in North America last year,” said Gary Cardone, president of Dynegy Europe Ltd.

Doubling its presence in the U.S. utility market, the UnitedKingdom’s National Grid Group Plc agreed yesterday to buy NiagaraMohawk Holdings Inc. for $8.9 billion in cash, stock and assumeddebt. The U.K. power producer plans to merge Niagara with twoMassachusetts utilities acquired earlier this year, boosting itsU.S. customer base to more than 3.2 million.

Doubling its presence in the U.S. utility market, the United Kingdom’s National Grid Group Plc agreed last week to buy Niagara Mohawk Holdings Inc. for $8.9 billion in cash, stock and assumed debt. The U.K. power producer plans to merge Niagara with two Massachusetts utilities acquired earlier this year, boosting its U.S. customer base to more than 3.2 million.