Busi­ness Up­dates

To­tal sells North Sea gas as­sets worth more than US$900 mil­lion

The China Post - - INTERNATIONAL -

French oil gi­ant To­tal an­nounced Thurs­day it had agreed to sell a North Sea gas ter­mi­nal and two pipe­lines in a deal worth over US$900 mil­lion in a move to help off­set fall­ing oil prices.

To­tal said Bri­tain’s North Sea Midstream Part­ners had agreed to buy the FUKA and SIRGE gas pipe­lines and the St. Fer­gus Gas Ter­mi­nal in Scot­land for 585 mil­lion ($905 mil­lion eu­ros).

The sale is part of To­tal’s ef­fort to sell US$10 bil­lion worth of as­sets be­tween 2015 and 2017, along with re­duc­ing new in­vest­ment and cut­ting pro­duc­tion costs, to com­pen­sate for sag­ging in­come as oil prices have dropped to their low­est lev­els since 2009.

The deal an­nounced Thurs­day fol­lows on the heels of To­tal’s sale last month of stakes in three North Sea gas fields for US$873 mil­lion, and brings to­tal di­vest­ments for the year to US$3.5 bil­lion.

“The sale of these midstream trans­porta­tion as­sets is another ex­am­ple of To­tal’s strat­egy of ac­tive port­fo­lio man­age­ment and the strong po­ten­tial to un­lock value from a range of in­fra­struc­ture as­sets,” To­tal’s chief fi­nan­cial of­fi­cer Pa­trick de La Che­vardiere said in a state­ment.

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