Dominion, the US energy producer, has announced it is to put the majority of its oil and natural gas production assets up for sale.

Following a strategic review, Dominion will now focus on growing its electric generation and energy distribution, transmission, storage and retail businesses. However, it will retain its properties in the Appalachian Basin in northwest Pennsylvania due to their value to the company's natural gas pipeline, storage and gathering businesses. 

Investment banks JP Morgan, Lehman Brothers and Juniper Advisory LP will advise on the sale, which is expected to formally begin in mid-February 2007. 

Dominion estimates that its oil and natural gas reserves excluding the Appalachian basin amount to the equivalent of 5.5 trillion cubic feet, with an average daily production of 1.175m cubic feet. 

No potential bidders have yet been identified but the company said it expected the sale to generate “significant interest”.