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Total Sells UK North Sea Midstream Assets For $905mn


French supermajor Total will sell all of its interests in some of its UK North Sea midstream assets to North Sea Midstream Partners, an affiliate of US-based private equity company ArcLight Capital, for approximately $905 million.

Patrick de La Chevardière, CFO of 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.”

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Patrick de La Chevardière, CFO of Total

What Total Is Selling

The Frigg UK Pipeline (FUKA) is a 362-kilometer, 32” gas pipeline that was originally built in 1977 to connect the Frigg Field on the UK – Norway median line to the St. Fergus Gas Terminal in Scotland.

The 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 Mmscf/d, currently serving over 20 fields. Total holds a 100% operated interest in the terminal.

enter image description hereThe St Fergus Gas Terminal

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

Total said that 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.

Total’s UK Presence

Total’s presence in the UK dates back to 1962. The company is now is one of the UK’s leading oil and gas operators, with equity production of 89,000 boepd last year.

More than 90% of Total’s production in the UK comes from several operated fields located offshore in two major zones: the Alwyn/Dunbar area in the Northern North Sea and the Elgin/Franklin area in the Central Graben, where the West Franklin Phase 2 project was brought on stream earlier this year.

With the upcoming start-up of the Laggan-Tormore project in the West of Shetland area, Total is opening up its third hub in the UK and a new frontier gas production area for the industry.

By the end of this year, Total says it expects to become the largest producing oil and gas company in the UK.


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