Harrods puts oil stake up for sale

Harrods: No longer so keen on oil

Harrods chairman Mohammed Al Fayed is looking to scale back his involvement in the oil business.

Harrods Energy, a majority-owned subsidiary of Mr Al Fayed's extensive business empire, has invested $43m (£30m) in exploring four offshore blocks in the Gulf of Thailand.

Now, the firm has announced it is seeking a partner to acquire a majority stake, reducing Mr Al Fayed's holding to some 25-30%.

The move has been forced by the cost of developing the oilfields.

"We want to bring in additional equity and expertise," said Alan Armitage, president of Harrods Energy.

Mr Armitage said the likely acquirer would be a multinational petroleum company.

According to reports in the Thai press, Harrods Energy has already approached a range of companies, including American Chevron, Unocal and Amerada Hess, and Anglo-Dutch Shell.

Empire

Mr Al Fayed is best known in Britain for his retail and leisure interests, which aside from Harrods' Knightsbridge store include Fulham Football Club and the Ritz hotel in Paris.

But his business empire ranges much wider, including an online casino and a helicopter chartering firm, among others.

Al Fayed: Global business empire

His biggest non-core subsidiary is Harrods Minerals, a Denver-based firm which has gold and copper mining projects in Mongolia and Peru.

Mr Al Fayed is keen to free up capital for investment in Fulham FC, promoted to the premiership at the end of last season.

In February this year, he raised a reported £350m against his Knightsbridge store, a move that will boost plans for a new £70m stadium for the club.