Home Business Noble Group to Sell Oil and LNG Business Units by December

Noble Group to Sell Oil and LNG Business Units by December

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The Noble Group of companies plans to put its Oil and Liquefied Natural Gas (LNG) units up for sale following a loss of about $1.9 billion during the first half of the year. Formerly one of Asia’s largest commodities traders, the company has been forced to sell assets and cut jobs due to financial losses and incurred debts.

Noble Group Limited commenced the trading of the capital-intensive oil liquids unit in July. The Singapore-listed organization declared in a statement to the press that they envisage the sale being finalized by December 31st, 2017. The Chairman of Noble Group Limited, Paul Brough, announced to shareholders earlier in September that they had accepted the second round of bids and would give notice of an agreement by the end of the month. However, no explanation was given for the brief delay in the sale.

More Interest In The United States

Noble Group’s Oil and LNG business attracted interest, particularly in the United States, even before the sale was made public. Although the company has seen a significant plunge in its market value in 2017, the sale has attracted some keen bidders, including U.S.-based Castleton Commodities International, Vitol group, and Freepoint Commodities. The Mercuria Group, who also acquired NGL’s North American gas and power operation earlier this year, was also among a lot of bidders for the oil liquids business.

NGL’s $2 billion credit facility was set to be terminated in October after a four-month protraction. However, the company has revealed that it was granted an additional three-month extension, validating the credit facility till January 2018.