Total Divests Assets in the UK to Petrogas
July 10 2019 - 2:35AM
Business Wire
Regulatory News:
Total (Paris:FP) (LSE:TTA) (NYSE:TOT) has signed an agreement to
divest several UK non-core assets to Petrogas NEO UK Ltd, the
exploration and production arm of the Oman-based conglomerate MB
Holding. Petrogas has partnered with Norway-based private equity
investor HitecVision.
Formerly owned by Maersk Oil, these assets are located in the
Eastern North Sea and include the fields listed below (see table).
The overall consideration for this deal amounts to 635 million
dollars with an effective date of January 1, 2019. The transaction
remains subject to approval from the relevant authorities and is
expected to close in December 2019.
“This transaction is consistent with our portfolio management
strategy, aiming at lowering our break-even point by optimizing
capital allocation and divesting high technical costs assets. Our
primary objective is to maintain the organic break-even before
dividend below $30 per barrel and high-grading our portfolio will
help us achieve this” commented Arnaud Breuillac, President
Exploration & Production at Total.
Following the Maersk Oil acquisition in 2018, Total became the
second largest operator in the North Sea, which is one of its core
areas. The region is home to some of the Group’s current major
projects: Culzean, which started up last month in the UK, and Johan
Sverdrup in Norway with first oil planned later this year.
The assets divested of in this transaction are as follows:
List of assets included in the
transaction
Area
Field
Total
interest sold
Operator
UK
Dumbarton
100%
Total
Balloch
100%
Lochranza
100%
Drumtochty
100%
Flyndre
65.94%
Affleck
66.67%
Cawdor
60.6%
GoldenEagle
31.56%
CNOOC
Scott
5.16%
Telford
2.36%
Total in the United Kingdom
Total is present across the energy value chain in the UK. It has
been present in the country for over 50 years and employs over
2,000 people.
Upstream, Total is one of the country’s leading oil and gas
operators, with equity production of 179,000 boe/d in 2018. It
principally comes from operated offshore fields in three major
zones: the Alwyn/Dunbar area in the Northern North Sea, the
Elgin/Franklin area in the Central North Sea, the Laggan-Tormore
area in the West of Shetland area.
Downstream, Total is one of the UK’s largest suppliers of gas
and electricity to businesses and the public sector. The Group is
also present in refining through the Lindsey Oil Refinery in
Lincolnshire, with a capacity of 110,000 barrels per day, and in
the marketing of petroleum products including lubricants, aviation
fuel, bitumen and specialty fluids.
About Total
Total is a major energy player that produces and markets fuels,
natural gas and low-carbon electricity. Our 100,000 employees are
committed to better energy that is safer, more affordable, cleaner
and accessible to as many people as possible. Active in more than
130 countries, our ambition is to become the responsible energy
major.
* * * * *
Cautionary note
This press release, from which no legal consequences may be
drawn, is for information purposes only. The entities in which
TOTAL S.A. directly or indirectly owns investments are separate
legal entities. TOTAL S.A. has no liability for their acts or
omissions. In this document, the terms “Total” and “Total Group”
are sometimes used for convenience where general references are
made to TOTAL S.A. and/or its subsidiaries. Likewise, the words
“we”, “us” and “our” may also be used to refer to subsidiaries in
general or to those who work for them.
This document may contain forward-looking information and
statements that are based on a number of economic data and
assumptions made in a given economic, competitive and regulatory
environment. They may prove to be inaccurate in the future and are
subject to a number of risk factors. Neither TOTAL S.A. nor any of
its subsidiaries assumes any obligation to update publicly any
forward-looking information or statement, objectives or trends
contained in this document whether as a result of new information,
future events or otherwise.
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