Total and Shell in hunt for First Calgary gas

20th January 2005, Comments 0 comments

LONDON, Jan 20 (AFP) - European oil giants Royal Dutch/Shell and Total are leading the chase to buy the Canadian gas company First Calgary, a newspaper report here said Thursday.

LONDON, Jan 20 (AFP) - European oil giants Royal Dutch/Shell and Total are leading the chase to buy the Canadian gas company First Calgary, a newspaper report here said Thursday.

The Anglo-Dutch and French groups are among eight to ten energy companies hoping to buy First Calgary, valued at GBP 1.7 billion (EUR 2.2 billion, USD 3.2 billion) and which wants to auction itself off by the end of March, The Daily Telegraph newspaper said.

First Calgary asked the US investment bank Lehman Brothers to review its strategic options three months ago, while sources told the paper that an outright sale to the highest bidder was now most likely.

First Calgary's major asset is a natural gas field in Algeria, which is attractive to large energy companies including Shell, Total, Statoil and Repsol because of its proximity to gas-hungry western Europe, the paper said.

It added that First Calgary needed to sell because the field required investment of USD 2.5 billion (EUR 1.9 billion).

© AFP

Subject: French News

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