Suez Tractebel to sell Oman's United Power stake

STAKE SALE: Suez Tractebel, part of France's Suez Energy International, plans to sell its 32.8 percent stake in Oman's United Power Co before next March at the government's request. (Getty Images)

Suez Tractebel, part of France's Suez Energy International, plans to sell its 32.8 percent stake in Oman's United Power Co before next March at the government's behest, a company official said.

Suez, which has a shareholding in four independent water and power projects in Oman, said the government had asked it to divest its holding in United Power after granting it other concessions, including a stake in Al-Ruail Power Co.

"We will sell our stake in United Power before March, 2009," Pascal Martese, senior financial adviser at Suez, said in the Omani capital of Muscat on Tuesday.

"This is to comply with our commitment with the government at the time of acquiring Al-Ruail Power and getting a concession to develop the second phase of Barka power and water project."

Suez would begin the sale process by the third or fourth quarter, Martese said.

"We expect international power companies and investment funds to show interest," he said.

United Power, Oman's first independent power project, was set up in 1994 with an installed capacity of 90 megawatts, which was later expanded to 280 MW.

Suez Energy operates about 12,000 MW of power and 475 million gallons of desalinated water in the Middle East.

Apart from United Power, Suez has interests in Sohar Power Co, which completed an initial public offering this month, Al Rusail and Barka IWPP II. (Reuters)

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