SembCorp acquires Enron’s Teesside operations

SembCorp Utilities has acquired the assets and business of Enron Teesside Operations Limited, which is based at the Wilton International petrochemicals complex in the UK, for £83 million.

SembCorp Utilities (SembUtilities) announced yesterday that it has acquired, the assets and business of Enron Teesside Operations Limited (ETOL), which is based at the Wilton International petrochemicals complex in the UK.

The business will now operate through a newly established company to be called SembCorp Utilities Teesside Limited (SUTL), a wholly owned subsidiary of Singapore based SembUtilities.

Under the sale and purchase agreement signed on April 15, 2003, SUTL has paid £83 million for the assets and business of ETOL. An additional consideration of up to £4.2 million (S$11.8 million) may become payable if certain conditions being met.

SUTL will provide key utilities and services to a number of major international chemical companies on the Wilton, Billingham and North Tees sites on Teesside, the third largest petrochemical hub in Europe, and one of the most important chemical sites in the UK.

The main assets of the business include a 133-megawatt cogeneration facility and water treatment plant, together with related distribution and service infrastructure. This infrastructure links all the customers on the Wilton International site and two other adjacent sites.

Steam, electricity and water sales are said to represent approximately 70 per cent of the total revenues of the business. Other support services provided by the business include emergency response, security, environmental services, a customer contact service centre (OC5) stores and buildings, land and road management.

According to a statement, the acquisition is in line with SembUtilities’ strategy to derive an increasing proportion of revenue from outside Singapore.