UK Government Blocks Russian North Sea Oil Deal

Published at 06:46PM - 20/10/14

The UK has blocked a proposed UK North sea gas field acquisition deal worth $6.4 billion from Russian billionaire Mikhail Fridman. The move forms part of the country’s ongoing package of sanctions against Russian investors and businessmen believed to be linked to President Putin.  Mr Fridman was hoping to purchase REW Dea, which pumps natural gas and oil to Britain, Denmark, Germany and Egypt.

Various high-profile industry leaders were involved in providing support and advice to Mr Fridman with regards to the proposed purchase, including Jim Hackett, formerly of Anadarko Petroleum Co., and Lord Browne, former BP CEO.

Germany had approved the deal in the summer, but RWE had waited for confirmation that the UK government would approve the deal before finalising it. Ultimately, it is expected to still come to fruition, but it seems likely that UK offshore gas assets in the North Sea will be removed from it.