TransCanada Reaches Agreement to Sell Netherlands Assets

abarrelfullabarrelfull wrote on 24 Jun 2014 11:29
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August 23, 2000

TransCanada PipeLines Limited today announced it has reached an agreement to sell its Netherlands assets to GDF INTERNATIONAL S.A. (GDF), a wholly owned subsidiary of Gaz de France, for approximately EUR371 million ($501 million), with an effective sale date of July 1, 2000. In addition, TransCanada expects to receive approximately EUR38 million ($51 million) in cash distributions relating to first half 2000 activity of the assets.

Out of the total gross cash proceeds from the sale, TransCanada will make an estimated final payment of approximately $105 million to settle deferred and contingent obligations related to the original purchase of the Netherlands assets in 1998. Out of the net cash proceeds from the sale of approximately EUR331 ($447 million), not including certain transaction costs, TransCanada will repay a loan of approximately EUR122.5 million ($165 million) associated with its original purchase and operations of the Netherlands assets.
The sale to GDF includes all of the outstanding shares of two TransCanada subsidiaries;
TransCanada International (Europe) Ltd., and TransCanada International Petroleum (U.K.) Ltd. These companies indirectly control TransCanada’s various interests in seven offshore natural gas producing licenses, and its 38.57 per cent interest in both an offshore natural gas pipeline system and a natural gas treatment plant in the Dutch sector of the North Sea. Closure of the transaction is expected by the end of this month, pending necessary consents and approvals. Schroder Salomon Smith Barney and Waterous International advised TransCanada on the sale.

“We are pleased with the proceeds to be realized from this sale, which are in line with our expectations,” said Doug Baldwin, TransCanada’s President and Chief Executive Officer. “Since last December, TransCanada has already sold or has agreements to sell approximately $2.8 billion of non-core assets.”

Some assets remaining to be sold under the company’s divestiture program include: • the remainder of TransCanada’s midstream (natural gas liquids extraction and gathering and processing) assets;

  • Cancarb Limited (thermal carbon black manufacturing business and associated power plant);
  • the company’s interest in the Express System; and
  • several assets in Latin America.

TransCanada is a leading North American energy company. It is focused on natural gas transmission, power, and gas marketing services, complemented by employees who are expert in these businesses. The company’s network of approximately 38,000 kilometres of pipeline links the Western Canada Sedimentary Basin to North America’s fastest growing markets. TransCanada transports approximately 77 per cent of western Canada’s natural gas production, with 60 per cent of total volume delivered to the United States. TransCanada’s common shares trade under the symbol TRP, primarily on the Toronto and New York stock exchanges. Visit us on the internet at www.transcanada.com for more information.

Quick Facts:
In July 1998, TransCanada acquired an operating position in the Dutch North Sea with the purchase of all of the shares of Occidental Netherlands Inc., a wholly owned subsidiary of Occidental Petroleum Corporation.

Natural Gas Production Licenses
Through an indirect subsidiary, TransCanada has interests in seven natural gas production licenses in the Dutch North Sea. The subsidiary is the operator in all of the blocks and has working interests in the licenses ranging from 25 per cent to 49.3 per cent. Current production from the Netherlands wells is approximately 2.6 million cubic metres (92 million cubic feet) per day net to TransCanada.

Earlier this year, TransCanada announced two new commercial offshore gasfield discoveries. In January, the G17-4 exploration well tested at 1.1 million cubic metres (39 million cubic feet) of gas per day. In April, the K12-13 exploration well tested at approximately 800,000 cubic metres (28 million cubic feet) of gas per day. The size of this discovery is estimated to be in the range of 4 to 10 billion cubic metres (141 to 353 billion cubic feet), subject to further appraisal drilling.

Offshore Natural Gas Pipeline System and Natural Gas Treatment Plant
TransCanada indirectly owns a 38.57 per cent interest in a 178-kilometre mainline "common carrier" offshore pipeline with associated riser, compression facilities and laterals. The 914 millimetre (36-inch) mainline system has a capacity of approximately 41 million cubic metres (1.5 billion cubic feet) per day. TransCanada indirectly owns 38.57 per cent of a gas treatment plant and railcar loading facility located at Uithuizen, Netherlands. The company also indirectly owns 27 per cent of an associated 140-kilometre pipeline that extends to an area in the Dutch North Sea near the United Kingdom border.


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