Comprehensive M&A data with integrated detailed company information

Total selling UK assets to Petrogas
Posted on Wednesday, 10 July 2019 15:02
French oil and gas giant Total has agreed to offload a number of non-core UK assets to Petrogas NEO UK. Under the terms of the transaction, the buyer will pay USD 635.00 million for the operations, which comprise a portfolio of operated and non-operated upstream assets in four producing areas of the UK North Sea. The activities being sold have an expected average 2019 production of 25,000 barrels of oil equivalent per day and employ more than 110 people. Norwegian private equity firm Hitecvision is providing support to Total on the transaction. Completion is expected to follow during December 2019, subject to the green light from the relevant authorities. Commenting on the decision to sell, Total’s president of exploration and production, Arnaud Breuillac, said: “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.” Petrogas and Hitecvision believe the acquisition is in line with their strategy of building a full-cycle North Sea operator focused on combining value creation with high environmental, social and governance standards. Total employs in excess of 2,000 people in the UK, where it has had a presence for more than 50 years. No redundancies are expected as a result of the deal. This is not the first asset sale to have been announced by Total this year; back in February, it agreed to divest a 7.7 per cent share of its Norwegian Sea Mikkel field to Repsol Norge for an undisclosed consideration. It has also been linked with a sale of a stake in Kashagan; in May, four banking sources told Reuters the firm was looking to offload part of its holding in the business in a bid to raise as much as USD 4.00 billion. © Zephus Ltd