Total 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. The overall consideration for this deal amounts to USD 635 million 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 optimising 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” comments 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:
Field (interest sold, operator)
Dumbarton (100%, Total)
Balloch (100%, Total)
Lochranza (100%, Total)
Drumtochty (100%, Total)
Flyndre (65.94%, Total)
Affleck (66.67%, Total)
Cawdor (60.6%, Total)
GoldenEagle (31.56%, CNOOC)
Scott (5.16%, CNOOC)
Telford (2.36%, CNOOC)