Northumbrian Water gets bid offer

1 July 2011 Last updated at 08:23 GMT Northumbrian supplies water in the north east of England Northumbrian Water has confirmed that it has received a takeover proposal from Hong Kong-based Cheung Kong Infrastructure Holdings (CKI).

Northumbrian said there was "no certainty" that CKI would move ahead with a formal bid.

Based in Durham, Northumbrian supplies water in the north-east of England. It also owns Essex & Suffolk Water.

CKI has water supply interests around the world. It also has a 50% stake in the Seabank Power Station near Bristol.

CKI is part of the Hong Kong conglomerate Cheung Kong Holdings, which is owned and run by Li Ka Shing, the world's 11th richest man. His eldest son, Victor Li is chairman of CKI.

Northumbrian said a further announcement would be made "when appropriate".

Global player

Last month, Northumbrian reported a 6.3% rise in full-year profits for the year to the end of March.

Its pre-tax profits for the 12 months totalled ?181m, compared with ?170m a year earlier, and company said the increase was due in part to higher water and sewerage charges.

Its main business provides water and sewerage services to 2.6 million people in Northumberland, Tyne and Wear, County Durham and parts of North Yorkshire.

Essex & Suffolk Water supplies 1.8 million people in the south-east of England.

CKI's business interests cover the water, energy and transportation sectors.

In addition to Hong Kong and the UK, it has investments in mainland China, Australia, Canada, New Zealand and the Philippines.

Listed on the Hong Kong Stock Exchange, its market capitalisation is about 80bn Hong Kong dollars ($10.2bn; ?6.4bn).

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Water industry to take on sewers

21 June 2011 Last updated at 11:00 GMT The cost of maintaining the pipes is estimated to be the equivalent of ?162 per household each year Water companies are being told by the government to take on responsibility for the sewers that run underneath homeowners' properties.

Until now, households have typically had to fix problems affecting the initial stretch of pipe that connects their property to the sewer mains.

Some experts warn that water firms will cover the added cost by raising bills.

The government estimates 200,000km of pipes are involved, with a total annual cost ?4.2bn, or ?162 per household.

"[Water companies] will do what the government asked them, which is to take over responsibility, and [that will] actually simplify things... for their operations," said David Strang, legal and policy advisor at industry body Water UK.

But he warned that the industry does not yet know for certain the length of sewers being taken on or what condition they are in, so estimating costs is difficult.

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UK tests deep water oil leak plan

19 May 2011 Last updated at 17:29 GMT An RAF Hercules sprayed water to simulate dispersant in the oil spill exercise west of Shetland More than 100 people have taken part in an oil spill exercise off Shetland, one of the biggest of its kind in the UK.

It followed concerns raised by the Gulf of Mexico spill in April 2010, when a blast at the Deepwater Horizon rig caused a massive oil leak.

Exercise Sula tested how authorities would react to and deal with a major deep water spill in the UK.

It was led by the Maritime and Coastguard Agency and the Department of Energy and Climate Change.

The clean-up exercise west of Shetland was hampered by rough seahs and strong winds gusting up to 50mph.

Greenpeace protest

Only one of several booms - used to contain spills - was deployed in the simulation, while an RAF Hercules was also used to break up the oil.

Last year, the UK government set up a planning group for the exercise, involving the emergency services, government agencies, the local authority and the oil industry.

Continue reading the main story David Shukman Environment & science correspondent, BBC News

Just the weather to test the claims of the oil industry that it can cope with a spill.

Here at Shetland's massive Sullom Voe oil terminal, the winds are vicious, squalls strike without notice and everyone keeps rushing for shelter.

Stretches of bright orange boom have been laid in the bay but not as much as planned because the gusts would blow them away.

Imagine doing this for real in mid winter. Seeing the oil vessels engaged on the exercise takes me back to the Gulf of Mexico last summer, the nightmare spill that is in everyone's minds today.

That challenged BP. Now in these wild waters, it is Chevron pretending it has lost control of a deep well. They keep stressing that they are not complacent. In these conditions, you cannot be.

A giant Hercules plane has just flown by spraying water to simulate dispersant. Who knows where the wind has blown it?

US oil giant Chevron, which is drilling for oil in the area, agreed to join the simulation before its staff were targeted by environmental protesters from Greenpeace last September.

The campaigners attached themselves to the Stena Carron, a drilling ship off Shetland operated by Stena Drilling and on contract to Chevron.

They then attached a survival pod to the ship in a stunt aimed at highlighting the dangers of deep water drilling.

Exercise Sula director Murray Milligan said: "The UK's offshore safety and environmental regulatory regime is one of the most robust in the world and the industry's record is strong.

"Nevertheless, it's right that we continue to test our response capability.

"Exercise Sula will test the participants' response to an unfolding scenario, involving the uncontrolled release of hydrocarbons into the sea from a deep water well operated by Chevron Upstream Europe at the Cambo well site, 86 miles west of Shetland.

"This exercise will give the UK an opportunity to assess its response capability to a release from a wellhead 1,000m below the surface.

"Because the exercise scenario involves the weather and tides forcing the oil to land onshore, we'll also have the opportunity to test a shoreline response in Shetland."

Eleven people were killed in the Deepwater Horizon rig explosion last year, and in the months that followed more than 200 million gallons (780 million litres) of oil flowed into the Gulf of Mexico from the well.

It polluted hundreds of miles of coastline and became the worst US oil spill in recent history.

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