French energy firm Total has agreed to sell a 30% stake in the Société des Transports Pétroliers par Pipelines (Trapil) pipeline network.
French oil storage firm Pisto will pay for €260m (approximately $290m) for the interest.
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After completion of the transaction, the company will remain to be a minority shareholder owing a 5.55% interest in the pipeline.
It will continue to use Trapil infrastructure to carry products from the Normandy and Grandpuits refineries, according to the current agreement.
Total chief financial officer Jean-Pierre Sbraire said: “The sale of Total’s interest in this infrastructure reflects its active portfolio management strategy. Rather than own infrastructure assets, the group’s aim is to hold contracts to use such infrastructure when needed to manage its industrial assets.
“This sale will help us achieve our target of divesting $5 billion in assets over the period 2019-2020.”
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By GlobalDataCreated by the French Government, Trapil is one of Europe’s largest pipeline network comprising 1,375km of pipe, 28 pumping stations and 27 delivery terminals.
Pisto is an independent crude oil and refined product storage operator and owned a 44% stake in Trapil prior to the transaction.
The transaction is expected to close depending on the receipt of French regulatory approvals.
Last month, Total and its partners approved the launch of the Phase 3 development of the onshore Dunga field in the Mangystau region of western Kazakhstan.
The Total-operated Phase 3 will include additional wells to the existing infrastructure and processing plant upgrades to increase its capacity by 10% to 20,000boe/d by 2022.
In June, the company signed an agreement to acquire Japanese firm Toshiba’s liquefied natural gas (LNG) business.
