Formerly owned by Maersk Oil, these assets are located in the eastern North Sea and include the Dumbarton, Balloch, Lochranza, Drumtochty, Flyndre, Affleck, Cawdor, GoldenEagle, Scott and Telford fields. The overall consideration for this deal amounts to US$635 million with an effective date of 1 January 2019. The transaction remains subject to approval from the relevant authorities and is expected to close in December 2019.
“This transaction is consistent with our portfolio management strategy, aiming at lowering our break-even point by optimising capital allocation and divesting high technical costs assets. Our primary objective is to maintain the organic break-even before dividend below US$30 per barrel and high-grading our portfolio will help us achieve this” commented Arnaud Breuillac, President Exploration & Production at Total.
Following the Maersk Oil acquisition in 2018, Total became the second largest operator in the North Sea, which is one of its core areas. The region is home to some of the Group’s current major projects: Culzean, which started up last month in the UK, and Johan Sverdrup in Norway with first oil planned later this year.
Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/11072019/total-divests-uk-assets-to-petrogas/