French integrated oil and gas company Total has signed an agreement to sell wholly owned subsidiary Total E&P Deep Offshore Borneo (TEPDOB) to oil and gas firm Shell for $300m.
The subsidiary holds an 86.95% stake in Block CA1, which is located 100km off the coast of Brunei. Stretching across an area of 5,850km2, the block is currently operated by Total alongside partners Murphy Oil and Petronas. Murphy Oil holds 8.05% interest and Petronas holds 5% ownership in the Brunei block.
Total mentioned that water depth of Block CA1 ranges from 1,000m to 2,500m.
Total Exploration & Production president Arnaud Breuillac said: “This transaction fits with our strategy of actively managing our portfolio and will contribute to our programme to dispose of $5bn of non-core assets over the period 2019-2020.”
Expected to close in December 2019, the transaction is dependent on approvals from the relevant authorities.
Since 1987, Total has been operating two subsidiaries in Brunei, namely Total E&P Borneo (TEPB) and TEPDOB.
TEPB is the operator of Block B Joint Venture (JV) with a 37.5% interest together with Shell Deepwater Borneo (35%) and PB Expro (27.5%). In Brunei, Total currently has three offshore platforms (MLJ1, MLJ2 and MLJ 3) and one onshore processing plant.
In September 2010, a production sharing agreement for block CA1 was signed between the Brunei Government and Malaysia’s Petronas.