ABB sells oil and gas division
The buyer is a syndicate consisting of a number of financial investors headed by Candover Partners Ltd, JP Morgan Partners and 3i Group, according to a press release from ABB.
It is just the upstream part of ABBs oil and gas operations which will be sold. The subsidiary ABB Lummus Global is among the operations which will remain in the old ABB.
The sale includes most of the Norwegian oil and gas production, and the price is expected to amount to between NOK 6.5 to 6.8 billion (USD 1 billion).
3,500 employees in Norway
According to Halvor Molland, information director at ABB in Norway, 3,500 Norwegian employees will be affected by the transaction, mainly the employees at the offshore workshop in Haugesund, the maintenance operations on the Norwegian shelf, underwater technology, and the connected engineer operations.
Molland stresses that the operations that will remain in the ABB system in Norway will continue its marketing towards the oil companies on the Norwegian shelf.
We will continue to deliver control, safety, and guidance systems, Molland said to TV 2 Nettavisen.
Molland states that ABB AS will have about 2,000 employees after the oil and gas operations is sold, and the company will still be represented at several central locations on Østlandet, in addition to Bryne, Bergen and Steinkjer.
As of yet, only an agreement stating that the buyers are intending to buy the oil and gas operations has been signed. The final sales agreement is expected to be ready before the end of the year. One of the stipulations of the final agreement is that the company is not involved in any more loosing projects. ABB has several unsolved cases in three countries in Africa, Central Asia and South America.
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