Conoco gets Canadian minister's nod for Gulf acquisition

US energy giant Conoco Inc. and Gulf Canada Resources Limited on Tuesday announced that The Honorable Brian Tobin, Minister of Industry and Minister responsible for Investment Canada, had approved the acquisition of Gulf Canada Resources by Conoco's acquisition subsidiary, Conoco Northern Inc.

In approving the acquisition, the Minister determined that the investment is likely to be of net benefit to Canada for purposes of the Investment Canada Act.

All required regulatory approvals for the transaction have now been received.

Earlier Conoco Inc. and Gulf announced that their boards of directors have unanimously approved an acquisition agreement under which a wholly owned Canadian subsidiary of Conoco will acquire Gulf Canada for US$8.02 per ordinary share in cash, or approximately US$4.3 billion in total equity. Conoco also will assume approximately US$2.0 billion of Gulf Canada's net debt, preferred stock and minority interests

Once the acquisition takes place, Southeast Asia will become a fourth core area for Conoco through Gulf Canada's 72 percent interest in Gulf Indonesia Resources Limited. Conoco will more than double its proved reserves in Southeast Asia and more than triple 2000's total net production from the region.

Earlier, Pat Meyer, Conoco?s Indonesia unit president said that incorporating earning from a 72 percent stake in Gulf Indonesia, natural gas sales, and oil production from Conoco operations in West Natuna, Conoco's earnings from South East Asia following the acquisition is set to exceed US$ 100 million in 2001. (alex)