The second largest utilities provider in Germany, RWE has engaged the services of Goldman Sachs to oversee the sale DEA, its oil and gas exploration unit. This was confirmed with Reuters by two individuals who spoke on the condition of anonymity.
Just last week RWE said it would be selling the unit in order to slash investments and reduce its Eur33 billion debt. DEA had used about Eur700 million in both 2011 and 2012. One of the sources valued DEA between Eur5 billion and Eur8 billion.
DEA is most active in Egypt, Libya and Norway as well as Great Britain. It was able to produce nearly 5.1 million cubic meters of oil equivalents for 2011 and was responsible for bringing in 23% of total operating profit for RWE in 2012.
The cut backs is due to the decision by the German government to decrease dependency in nuclear energy after the nuclear disaster in Fukushima, Japan.
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