27th Aug 2015 11:16
LONDON (Alliance News) - French oil major Total SA has stepped up the sale of its assets in the UK North Sea following the collapse in world oil prices after selling a Scottish gas terminal and its interests in two pipelines, the Financial Times reported Thursday.
The infrastructure sales follow on from Total's decision to sell its stake in the Laggan-Tormore project offshore the Shetland Islands to SSE PLC, which then became FTSE 250-listed Petrofac PLC's partner on the project, which has suffered delays throughout the year.
Total has signed an agreement to sell all of its interests in the FUKA and SIRGE pipelines and the St Fergus terminal to North Sea Midstream Partners, formed in 2012 to invest in North Sea infrastructure, for GBP585 million, the FT reported.
The Total sales could lead to a wave of North Sea dealmaking as more groups look to dispose of assets in a high-cost region where output has been in long-term decline and growing numbers of fields are now lossmaking.
http://www.ft.com/cms/s/0/891d6e58-4c19-11e5-b558-8a9722977189.html#axzz3k0l84z1A
Back in April, BP PLC conducted a similar deal when it sold its 36.2% equity in the Central Area Transmission System gas pipeline and processing facility in the UK North Sea to Antin Infrastructure Partners for GBP324 million.
BP had said it conducted the deal following a review into the North Sea oil and gas industry suggested that infrastructure be owned by specialist infrastructure companies or be co-owned by several oil producers.
By Joshua Warner; [email protected]; @JoshAlliance
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