Total to sell $1.5bn of UK North Sea assets

11 July 2018 (Last Updated July 29th, 2020 12:53)

French oil and gas company Total is set to divest multiple offshore assets located in the UK North Sea, which could be worth around $1.5bn.

French oil and gas company Total is set to divest multiple offshore assets located in the UK North Sea, which could be worth around $1.5bn.

The divestment is expected to include one-third of Total’s stake in Laggan Tormore gas field.

It would also include multiple smaller fields that the company received as a part of the $4.95bn AP Moller-Maersk’s oil and gas unit acquisition, completed in the March this year.

The fields will include Golden Eagle, Dumbarton, Bruce and Keith assets.

“Both fields are expected to host more than one trillion cubic feet of gas and condensates, around 230 million barrels of oil equivalent.”

According to the report, Bank of America Merrill Lynch will manage the sale process of 20% interest in the Laggan Tormore field, while investment bank Lambert Energy will run the divestment of other associated stakes.

Situated nearly 125km north-west of the Shetland Islands in the UK, Laggan Tormore includes two gas and condensate fields, which are operated by Total with 60% stake.

The other stakeholders of these two fields are SSE E&P UK and Dong E&P UK, which hold 20% stake each.

Both fields are expected to host more than one trillion cubic feet of gas and condensates, around 230 million barrels of oil equivalent.

Upon completion of the divestment process, Total will have 40% stake in the asset.

With most of the North Sea assets now reaching their mature stages, various oil companies are looking to divest their interests in a bid to slash operating costs.

Chevron is also reportedly preparing to sell its assets in UK North Sea oil and gas.