ENERGY.
Oranje-Nassau’s strategy is to acquire
fields already in operation. The group does not
undertake exploration, a more risky activity.
The average price of Brent oil, the benchmark,
was $72.45 per barrel, up 10% from the average
price of $65.75 in 2006. This was equivalent
to €52.90 in 2007, vs. €52.20 in 2006, an
increase of only 1% because of the steady
appreciation of the euro against the dollar in
2007. Driving this further increase in energy
prices in 2007 was an increase in worldwide
demand.
Net sales from Energy operations totaled
€243 million, up 5% from 2006. Oil and gas
production stood at 5.4 million barrels, up 8%
from the previous year. This increased came
about because the Buzzard oil fi eld, located
on the UK continental shelf, came on stream.
This successful launch more than offset the
natural depletion of other oil and gas reserves
in operation.
In July 2007, Oranje-Nassau signed an agreement
with Devon Energy International Ltd to
acquire all of its Gabon-based petroleum
assets for $206 million, subject to approval
from the Gabonese authorities. These fi elds
should increase the group’s production by
around 15%.
Conversely, Oranje-Nassau signed an agreement
to sell half of the stake, i.e. 9.1% out of
18.2%, it held in the Janice oil field, located on
the UK continental shelf. Completed in January
2008, this disposal and the corresponding capital
gain will be recognized in the 2008 fi nancial
statements.
REAL ESTATE.
Oranje-Nassau has decided to
refocus on its core business, the acquisition of
operating oil fields and to sell its real estate
business. In October 2007, Oranje-Nassau
believed market conditions to be favorable and
sold its Real Estate division.
INVESTMENT.
Since 2006, Oranje-Nassau
has been making equity investments in the
Netherlands, with the support of Wendel, in
companies with high potential for business
development.
Oranje-Nassau acquired 8% of AVR in 2006,
alongside KKR and CVC Partners. AVR is the
largest waste treatment company in the Netherlands.
In 2007, Oranje-Nassau acquired Van
Gansewinkel, an industry leader in Belgium,
thereby strengthening its position as one of the
premier European companies in this sector.
OUTLOOK
Oil production is set
to continue in 2008 with
the acquisition of new oil
fields in Gabon. The group
is in a favorable position
to pursue its investments.
