French oil and gas major Total is selling its midstream assets in the North Sea, reported Offshore Post.
The company is selling its assets, currently two subsea pipelines and an onshore processing plant, for $905m. The buying group is reported to be North Sea Midstream Partners.
Total has maintained a presence in the UK offshore sector since the early ’60’s, but has lately grown disenchanted with poor North Sea profit margins during a time of depressed oil prices.
Total’s CFO Patrick de La Chevardière, 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.”
News of the sale did not surprise the industry, as reports of the sell-off have been widely circulated for months. In June Reuters stated that the Total was in talks with US group ArcLight to buy the assets. The same report noted that the potential sale could be completed through its subsidiary, North Sea Midstream Partners.