France-based Total has agreed to divest all of its interests in the Frigg UK Pipeline (FUKA), the Shetland Island Regional Gas Export System (SIRGE) gas pipelines, and the St Fergus Gas Terminal to UK’s North Sea Midstream Partners, in a transaction valued at £585m ($905m).
Total chief financial officer 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 specialising in midstream UK assets creates value for us and ensures a long and bright future for the facilities."
Originally constructed in 1977, the 362km, 32in FUKA gas pipeline will connect the Frigg Field on the UK – Norway median line to the St Fergus Gas Terminal in Scotland.
Even though the field is decommissioned, the pipeline is still operational and is delivering gas from some 20 fields in the Northern North Sea to the terminal at St Fergus.
With a capacity of 2,648 million ft³ of gas per day (Mmscf/d), the three-train processing St Fergus Gas Terminal currently serves more than 20 fields.
Total holds 100% operated interest in the pipeline as well as the terminal.
According to Total, the 234km, 30in SIRGE gas pipeline has a capacity of 665Mmscf/d, connecting the Shetland Gas Plant to the FUKA pipeline.
The company holds a 67% operated interest in the pipeline, and other partners include Dong E&P (UK) (18.3%), Chevron North Sea (7.2%) and OMV (UK) (7.5%).
North Sea Midstream Partners will sign an agreement with px Group for the operation and maintenance of the assets, upon completion of the sale.