Russian Tycoon, Britain Clash over North Sea Deal
Russian billionaire Mikhail Fridman on Monday said he would buy a number of gas licenses in the North Sea despite British opposition, threatening legal action if London should force him to sell them on to a third party. German utility RWE on Monday finalised the sale of its oil and gas production unit DEA to Fridman's investment vehicle LetterOne, ending months of uncertainty over whether the 5.1 billion euro ($5.7 billion) deal would go ahead. The transaction, first announced a year ago, coincided with sanctions imposed on Russia for its actions in Ukraine, sparking concern in some EU countries about whether a European oil and gas business should fall into Russian hands.
Britain to Launch Review of its O&G Industry
Britain will launch a review to identify key risks to oil and gas production in response to the collapse in oil prices, after oil majors BP and ConocoPhillips said they were cutting more than 500 jobs in their North Sea operations. Britain's North Sea oil and gas sector employs more than 400,000 people and has generated in excess of $200 billion (131 billion pounds) in tax revenue for the government. But there are growing pressures on the sector after oil prices slumped almost 60 percent over the past month, leading to job cuts at BP, ConocoPhillips and other majors.
First New British Nuclear Plant in Decades Wins EU Funding Fight
A British plan to guarantee the price of power from its first new nuclear project in decades won European Union backing in a landmark ruling on Wednesday that now faces legal challenges. Seen as market-distorting state aid by opponents, the price guarantee was approved in a 16-to-5 vote with one abstention in a tense meeting of the College of Commissioners, sources told Reuters. Not all 28 members were present. The ruling clears the way for the 16-billion-pound ($26 billion) Hinkley Point C nuclear power station in southwest England to be operated by French utility EDF.
Price Cut Pressure Mounts on UK Energy Firms
Britain's big energy suppliers are coming under mounting pressure from consumer groups and politicians to cut household power and gas bills after a sharp drop in wholesale costs boosted the firms' profit margins. The country's "big six" energy providers, which supply 96 percent of UK households, are being urged to tame rising energy costs, and at least one lawmaker in Prime Minister David Cameron's Conservative party has called on the government to act swiftly to break up the energy companies. Tapping voter discontent ahead of next May's general election, Labour leader Ed Miliband has pledged to put a 20-month freeze on household energy bills if he is elected.
Britain's Conservatives to End Onshore Wind Subsidies
British Prime Minister David Cameron's Conservative party pledged to end government subsidies for onshore wind farms if it wins a national election next year, increasing uncertainty for investors in renewable energy. Michael Fallon, a Conservative energy minister, said that onshore wind still had a role to play in helping Britain meet its energy needs and renewable energy targets but that the industry no longer required government subsidies. "We now have enough bill payer-funded onshore wind in the pipeline to meet our renewable energy commitments, and there's no requirement for any more," Fallon said, in comments released by his office on Thursday.
