Total to sell North Sea midstream gas assets for $905 million

Total has signed an agreement to sell all of its interests in the FUKA and SIRGE gas pipelines and the St. Fergus Gas Terminal to North Sea Midstream Partners for around $905 million (£585 million).

The Frigg UK Pipeline (FUKA) is a 362-km, 32-in. gas pipeline that was originally constructed in 1977 to connect Frigg field, on the UK-Norway median line, to the St. Fergus Gas Terminal, in Scotland. Frigg field is now decommissioned, but the FUKA pipeline is still operational, delivering gas from some 20 fields in the Northern North Sea to the terminal at St Fergus. Total holds a 100% operated interest in the FUKA pipeline.

The St. Fergus Gas Terminal is a three-train processing plant with a capacity of 2,648 MMscfd. Total holds a 100% operated interest in the terminal.

The Shetland Island Regional Gas Export System (SIRGE) is a 234-km, 30-in. gas pipeline with a capacity of 665 MMscfd connecting the Shetland Gas Plant to the FUKA pipeline. Total holds a 67% operated interest in the SIRGE pipeline alongside Dong E&P (UK) (18.3%), Chevron North Sea (7.2%) and OMV (UK) (7.5%).

Patrick de La Chevardière, CFO at Total, said, “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. Transferring ownership to an entity specializing in midstream UK assets creates value for us and ensures a long and bright future for the facilities.”

Following the completion of the sale, North Sea Midstream Partners will have an agreement with px Group for the operation and maintenance of the assets.

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