Gulf Canada may sell its RI assets<\/p>\n
CALGARY, Alberta (Bloomberg): Gulf Canada Resources Ltd. may
\nsell additional assets including its publicly traded Indonesian
\nunit, as it tries to pay down debt and focus on western Canada,
\nChief Executive Richard Auchinleck said.<\/p>\n
The Toronto Globe and Mail on Friday reported that the company
\nwanted to sell the Gulf Indonesia interest, valued at US$565.3
\nmillion at current prices, by the middle of this year.<\/p>\n
Also on Friday, Auchinleck said the stake isn't officially for
\nsale, although the company would sell if approached with a good
\noffer.<\/p>\n
\"We're looking at selling assets, focusing on our all our
\ninternational assets, but we only if we get good value,\"
\nAuchinleck said.<\/p>\n
He said the company has \"no sacred cows\" in terms of what it
\ncould sell.<\/p>\n
Gulf Canada shares rose C$0.22 to C$4 in Toronto.<\/p>\n
The Indonesian holdings are considered by analysts to be one
\nof the most attractive parts of Gulf Canada, which also operates
\nin Australia and the Netherlands.<\/p>\n
\"Indonesia is the crown jewel of the company,\" said John
\nClarke, an analyst a Deutsche Bank Securities in Toronto.<\/p>\n
\"They've got nothing else that is going to help them in the
\nshort term.\"<\/p>\n
Gulf Indonesia's 54 percent-owned Corridor gas project, a
\njoint venture with Talisman Energy Inc. and Pertamina,
\nIndonesia's national petroleum company, just began delivering
\nnatural gas through a newly built 340-mile pipeline to Caltex
\nCorp.'s Duri steamflood project on the island of Sumatra, and
\ncould be expanded to supply gas to Singapore.<\/p>\n
Gulf Canada sold a 24 percent stake in Gulf Indonesia to
\ninvestors in 1997 for US$19.50 a share, raising US$409.5 million.
\nThe shares have since declined to a recent 8 7\/8 in New York.<\/p>\n
Gulf Canada, one of Canada's largest petroleum producers, has
\nfor the past year been selling assets to whittle its debt, which
\nwas C$2.2 billion (US$1.47 billion) at year's end. Oil prices are
\nnear their lowest in 12 years, forcing the company to keep
\ndivestitures as an option.<\/p>\n
Last year the Calgary, Alberta-based company sold its
\nproperties in the British part of the North Sea and put part of
\nits western Canadian natural-gas pipeline and gas processing
\nassets into a joint venture.<\/p>\n
\"When you've got as much debt as Gulf, you need to be looking
\nat all your options all the time,\" said Martin Molyneaux, an
\nanalyst with FirstEnergy Capital Corp. in Calgary.<\/p>",
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