French oil major Total to sell $900m of North Sea assets
Major oil company Total has recently approved of its North Sea assets with the disposal of a Scottish gas terminal and interest in two pipelines worth in value $900m.
Total signed the agreement to sell all of its interest in both the FUKA and SIRGE pipelines in the the North Sea for a value of £585m.
This recent deals follows the sale announced in July of a major stake in one of a major natural gas field to SSE.
This recent sell could potentially be followed by more after the chief executive Patrick Pouyanne said the group would look to accelerate and deepen its cost-cutting programme. This overal process would include disposal of $5bn worth of assets alone this year with a major portion being within the North Sea.
The recent sales by Total could potentially lead a splurge of of North Sea deals are additional groups seeks ways to dispose of their assets in an area where costs remain high but output has continued to see a long term decline.
Source: Financial Times