Total to sell North Sea assets for $900m

French energy major Total has agreed to sell its interests in the FUKA and SIRGE gas pipelines in the North Sea and the St. Fergus Gas Terminal in Aberdeenshire to North Sea Midstream Partners for around $900 million.

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

“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.”

Total said the Frigg UK Pipeline (FUKA) is a 362-kilometer gas pipeline that was 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 20 fields in the northern North Sea to the terminal at St. Fergus.

The St. Fergus Gas Terminal is a processing plant with a capacity of 2,648 million cubic feet of gas per day that currently serves over 20 gas fields.

The Shetland Island Regional Gas Export System (SIRGE) is a 234-kilometer gas pipeline with a capacity of 665 million cubic feet of gas per day connecting the Shetland Gas Plant to the FUKA pipeline.

Total holds 100% operated interests in the FUKA pipeline and the St. Fergus terminal and a 67% operated interest in the SIRGE pipeline. Total said the sales are “subject to the customary approvals.”

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