ConocoPhillips headquarters, photo courtesy of ConocoPhillips

ConocoPhillips and Dong divest pipeline shares

Norway

OSLO, October 20, 2015 – The US’ ConocoPhillips and Denmark’s Dong Energy will sell their minority stakes in an 8,000-kilometre pipeline network back to Norwegian oil and gas company CapeOmega for an undisclosed price, Bloomberg cited an unnamed source as saying Monday. The companies hold 1.68-percent and 0.98-percent stakes, respectively, in the Norwegian Gassled gas pipeline network.

The sale comes on the heels of a tariff dispute between the Norwegian government and several stakeholders in the pipeline network. Four companies owning a combined total of 44 percent of Gassled brought a lawsuit against the government, claiming that they would see income losses of NOK15 billion ($1.9 billion) as a result of a reduction in gas transportation tariffs. In September 2015, an Oslo court ruled in favour of the government.

Neither ConocoPhillips nor Dong Energy participated in the lawsuit.

While representatives for the companies declined to comment, there is speculation that the divestment is at least in part due to the collapse of oil prices since mid-2014.

For more news and features on Norway, click here.