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German utility RWE completes sale of 12 North Sea oil fields

05 Mar 2015

German energy company RWE has completed a deal on the sale of 12 North Sea oil and gas fields to Russian billionaire Mikhail Fridman.

The deal follows opposition from the UK government, and months of uncertainty over whether the EUR 5.1 billion sale would go through. The deal raised concerns as it coincided with sanctions imposed on Russia over the crisis in Ukraine.

As part of the deal, LetterOne is creating a new subsidiary, L1 Energy, which will be run by former BP chief executive Lord Browne.

The sale provides RWE with a much needed boost in funds, following the EUR 31 billion debt it has gathered over the past decade.