Berkshire Hathaway looks to be one of the beneficiaries of the withdrawal of Dana Petroleum from a major North Sea gas project called Platypus.
The Playtpus project has been estimated to have mid-case recoverable reserves of 105 billion cubic feet of natural gas.
Currently, CalEnergy Resources, a subsidiary of Berkshire Hathaway Energy, has a 26% stake in the project, and Parkmead Group has a 15% stake. Both companies would assume Dana’s interest, with Parkmead Group taking over the role of operator from Dana.
Dana Petroleum is a wholly-owned subsidiary of Korea National Oil Corporation.
Berkshire Hathaway recently increased its natural gas distribution holdings in the U.S. with its acquisition of Dominion Energy’s natural gas transmission and storage business.
CalEnergy, and its predecessor companies, have been active in oil and gas since the 1970s, and engages in exploration through appraisal, development, production and pipeline operations.
© 2021 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.