Oil and Gas News

Downer rejects rumoured oil and gas sale

Downer EDI has shut down speculation that it will potentially sell its oil and gas sector operations.

The company has released a statement to confirm that the business is not for sale and no consideration is being given to its sale, despite an article in The Australian suggesting a deal is being explored.

Downer’s oil and gas division is not the only part of the contracting business that has been the subject of speculation, with it also reportedly looking to offload its mining business.

The company announced last year that it was undertaking a portfolio review to identify any opportunities for realignment, where it was confirmed that the mining business was a focus area.

Downer confirmed in December that it was reviewing the future of its mining business, noting its excellent workers and proven track record, but calling it “very capital-intensive”.

News reports suggested that Emeco Group was in the hunt to acquire Downer’s mining division. Emeco responded to the report on the ASX last month by distancing itself from the speculation.

In Downer’s half-year financial report, released today, the company outlined the range of services it provides to the oil and gas industry, including planning, designing, constructing, operating, maintaining, managing and decommissioning power and gas network assets.

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