Drilling platform

Power and gas company E.ON is considering selling its North Sea and Algerian oil and gas assets for $2bn.

Banking sources told Reuters that the German company’s latest decision comes as part of restructuring its business.

The sale process, which excludes the company’s Russian assets, is expected to be launched in the coming weeks and the company has provided access to prospective buyers with regard to its international exploration, as well as production assets.

Sources said that the sale process will be performed by Bank of America Merril Lynch by the way of an auction.

Currently, E.ON’s North Sea exploration and production (E&P) business is said to be placed under strategic review.

"The review is ongoing and will consider the future options for the business, including a sale of the business."

E.ON spokesman told the news agency: "The review is ongoing and will consider the future options for the business including, for example, a sale of the business."

In 2014, the E&P business reported €1.1bn ($1.23bn) in earnings before interest, tax, depreciation and amortisation (EBITDA).

The group’s North Sea assets are claimed to have a combined output of 22.3 million barrels of oil equivalent (boe) during the year.

E.ON E&P has a 30%, 28.1% and 17.5% interest in Norweigan’s Njord, Skarv and the Hyme field, respectively and in Algeria, a 49% of the exploration licence for the Rhourde Yacoub area in the Berkine basin is owned by the company.

The company operates in over 30 countries and serves more than 33 million customers.

Image: E.ON’s Drilling Platform in North Sea, Germany. Photo: courtesy of E.ON SE.