Oman Oil Company SAOC (OOC) announced that it acquired a 15% stake in the Portuguese high-voltage transmission grid operator and natural gas transportation company- Redes Energéticas Nacionais, (REN). The total investment is US$276 million (EUR 205 million).
The agreement was signed on Wednesday 25th of February in Lisbon by HE Nasser bin Khamis Al Jashmi, Undersecretary of Ministry of Oil and Gas and OOC Chariman on behalf of OOC, and Mr. Joaquim Reis, CEO of Parpublica on behalf of the Portuguese Government.
The acquisition forms part of recent efforts of the Portuguese Government to privatise certain state-owned companies.
Commenting on the occasion, HE Al Jashmi OOC Chairman said: “We are pleased to announce our latest investment, which is in line with the Company’s strategy to expand and diversify its growing investment portfolio locally and internationally. REN is a reputable company with a strong track record and promising growth potential. This will be OOC’s maiden investment in the electricity transmission business, which will strengthen OOC’s infrastructure portfolio.”
REN was formed in 1994 as the electrical transmission company for the Portuguese State. REN’s main activity is to manage the energy transmission systems in Portugal and it is one of the few European operators active in both electricity and natural gas transmission. REN has long term concessions to operate the electricity and gas transmission networks in Portugal. REN’s 2011 expected revenue will reach US$1.35 billion (Euro 1 billion), compared $1.23 billion (Euro 917 million) in 2010.
OOC is a company wholly owned by the Government of ‎the Sultanate of Oman. The company was established in 1996 to give the Government ‎a vehicle for pursuing investment opportunities in the energy sector, both inside and ‎outside Oman. OOC has managed, in a relatively short period of time, to contribute to the ‎development of many important projects in energy and energy related areas. Through this ‎participation, OOC plays a key role in the Sultanate’s efforts to diversify the Omani economy ‎and help generate Omani and foreign private sector investment. Local and international investments of OOC include 35 projects ‎covering the areas of exploration and production, mining, refining and petrochemical, oil ‎products marketing, electricity generation and marine shipping sectors.
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