BG Group sells off its Philippine power plants stake for £230m
UK gas producer BG Group said yesterday it had agreed to sell its 40 per cent stake in two gas-fired power generation plants in the Philippines for $360m (£230.8m).
The company said it would use the cash to extend its interests in more lucrative oil and gas production.
The sale, to BG’s partner in the plants, First Gen Corporation, is part of a multi-billion dollar plan to sell assets and get debt off BG’s balance sheet, so cash can be diverted into major new finds in Brazil and Australia.
The sale concerns the Santi Rita San Lorenzo power plants.
First Gen will now own 100 per cent of the shares in the power plants which it tried to sell two years ago. BG’s chief executive Sir Frank Chapman said: “The sale of our stake in these Philippines plants is another step to realising the planned release of $5bn of capital in the next two years.”
On Tuesday the FTSE 100 company confirmed that it has signed binding agreements to offload its majority stake in South American firm Comgás for 3.4bn Brazilian reais (£1.1bn).