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