| 2009-03-26 |
Published: The Kommersantú (ú) Newspaper |
It was for the first time that ITERA Oil and Gas Company officially stated it was selling its shareholdings with the overseas projects in Canada, Cameroon and Armenia. These include a 40% shareholding in Maple LNG, a liquefied gas-storage terminal in the seashore of America, a 13% shareholding in BowLeven, a license-holder for exploration of three blocks in the shelf of Africa, and a 4.5% shareholding in Armrosgazprom. The Company explained it was selling non-priority and non-core assets to be able to concentrate on development of the resource base and construction of energy-related facilities inside Russia.
4Gas BV, a liquefied natural gas (LNG) terminal constructor of the Netherlands, announced the purchase of a 40% shareholding in Maple LNG’s project in Goldboro (Nova Scotia, Canada) from Suntera Canada Ltd (ITERA Oil and Gas Company and SUN Energy (India) are the founders). LNG was expected to be supplied from Russia or Cameroon. Harry van Rijtschoten, a 4Gas director responsible for the project, thanked Suntera for its involvement in the project and hoped the construction was to speed up. Amount of the transaction was not disclosed.
ITERA confirmed to "Ú" yesterday that the shareholding in the Canadian LNG terminal sale transaction was completed: 4Gas had purchased the Suntera Canada stake. Moreover, some other projects have been sold. Suntera sold 13% of stockholders' equity in BowLeven, a holder of licenses on geologic exploration at three blocks in the sea shelf of Cameroon in 2007, just one year after the purchase, - the Company explained. Indian mass media reported with reference to high-ranking sources in September of 2007, that Suntera Resources was buying four oil blocks in India: a 30% stake and a 40% stake in the two blocks in the state of Rajasthan, a 15% stake in a block in the water-collecting area of the Mahanadi River and a 10% stake in the Assam–Arakan area. It also reported that Suntera Resources owned a 70% stake in a block in the north of Nigeria through the fully owned subdivision of Suntera Nigeria. We failed to reach the SUN Group over the phone yesterday, while ITERA advised without going into detail that JV Suntera retained certain projects.
On the other hand, it became known that Itera International Energy sold its shares in CJSC Armrosgazprom to Gazprom. According to the Armrosgazprom report the deal had been registered with the Central Depository of Armenia on March 12, 2009. Previously, participation of the government in the registered capital was 20%, that of Gazprom was 75.55%, and that of ITERA was 4.45%.
Vladimir Makeyev, Chairman of the Management Board of ITERA Oil and Gas Company, LLC, confirmed to "Ú" that "under the conditions of the world economic crisis ITERA was concentrating on fulfilling the investment programs related to development of gas fields it owned and expanding the resource base in Russia". According to Mr. Makeyev, investments abroad were going down. "Certain foreign assets of no priority importance for the business development are being sold. It also refers to ITERA withdrawal from Armrosgazprom as a shareholder and the sale of shareholdings in projects in Canada and Cameroon. A number of non-core assets in Russia would be sold out, as well", — Mr. Makeyev explained.
ITERA is going to allocate the sales revenue and borrowed funds to development of the gas business, as well as to implementation of energy-related projects in the Sverdlovsk Region and the Nizhni Novgorod Region, - the Company explained. ITERA owns Moldkarton (a cardboard production factory in Moldova), oil enterprises, such as Orit-Oil, Zhuravskoye and Jupiter-A, and a number of industrial facilities in Russia. ITERA is not going to sell business in Byelorussia.
Konstantin Cherepanov of KIT Finance believed this decision of the Company is correct. According to the Russian Accounting Standards Report for the nine months of 2008, the long-term credit liabilities of the Company were $691 million, while its operating profit was $290 million. "The Company expects difficulties in 2009 and is considering the prospects for the settlement of debts that may transform from long-term debts into short-term debts. This is why, I believe, they are selling assets without detriment to the core business", — Konstantin Cherepanov believes. Maxim Shein of Brokercreditservice shares this viewpoint. He cites a systematic problem of consumers’ non-payment for gas. For ITERA affiliate in the Sverdlovsk Region the size of this problem was comparable with the Company’s monthly revenue in February.
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