Following a decision taken in February 2000, Norsk Hydro has agreed the sale of its oil and gas interests on the United Kingdom continental shelf to Conoco (U.K.) Limited for a total consideration of USD 540 million excluding net operating capital. The portfolio includes Britannia, Alba, Gryphon, and several exploration licenses, and was acquired through Norsk Hydro’s purchase of Saga Petroleum.
The transaction will generate a pre-tax gain of approximately NOK 500 million which will be reported in the consolidated accounts following the completion of this transaction. In addition a current tax saving of approximately NOK 450 million will be realized.
Completion of the transaction is subject to the appropriate regulatory and government approvals, and is expected during third quarter 2000.