The UK Government said it would revoke oil field licences in the North Sea owned by Russian billionaire Mikhail Fridman unless the ownership is changed.
His investment fund LetterOne (L1) bought 12 oil and gas fields from German utility RWE last month as part of L1’s deal to buy oil firm DEA despite objections from the UK Government.
Mr Fridman was given a week to justify why he should be allowed to retain ownership of the oil and gas fields.
Making the announcement today, DECC stated: “The Secretary of State Ed Davey has notified Dea UK and LetterOne that he proposes to revoke Dea UK’s North Sea petroleum licences unless LetterOne arranges for a further change of control of the Dea UK gas fields in the North Sea.”
LetterOne has up to six months to make a change in ownership.