Venture sees savings in pipeline

Published on Tuesday 23 June 2009 21:36

VENTURE Production has taken a stake in a Dutch pipeline company which will make exporting gas to the Netherlands more economic for the North Sea oil producer.

Aberdeen-based Venture said yesterday it will pay Lundin Petroleum 9 million (7.74m) for its 1.8 per cent stake in Nogat.

The privately owned Dutch company owns the Nogat pipeline and an onshore gas processing plant at Den Helder, north of Amsterdam.

The stake will give Venture a share of Nogat's profits, as well as cutting the tariff it pays for three of its existing fields to use the pipeline, enhancing the profitability of the fields.

The pipeline is operated by GDF Suez on behalf of shareholders, giving preferred access to projects run by companies which own equity in it.

Venture chief executive Mike Wagstaff said the deal was a "modest but valuable" step in the expansion of its Dutch business. He added: "This transaction will materially enhance the economics of several of our undeveloped Dutch gas discoveries."

Venture is in an offer period after British Gas owner Centrica said in March it was considering making a bid for the company.

Centrica has been ordered by the Takeover Panel to decide or walk away by 13 July.

Shares in Venture closed up 9.5p at 784.5p yesterday.