Total Sells Non-Core UK North Sea Fields for £500 Million
French oil major Total has agreed to sell $635 million worth of UK North Sea assets to Petrogas NEO UK.
Total said Wednesday that the assets being sold, formerly owned by Maersk Oil, were non-core, and located in the Eastern North Sea. Total bough Maersk Oil in March 2018.
The deal will see Total sell its stakes in Dumbarton, Balloch, Lochranca, Drumtochty, Flyndre, Affleck, and Cawdor fields, all of which it operates. Total will also divest its ownership in CNOOC-operated fields Golden Eagle, Scott, and Telford.
The overall consideration for the deal with Petrogas NEO UK amounts to $635 million with an effective date of January 1, 2019. The transaction remains subject to approval from the relevant authorities and is expected to close in December 2019, Total said.
Arnaud Breuillac, President Exploration & Production at Total: “This transaction is consistent with our portfolio management strategy, aiming at lowering our break-even point by optimizing capital allocation and divesting high technical costs assets. Our primary objective is to maintain the organic break-even before dividend below $30 per barrel and high-grading our portfolio will help us achieve this.”
Total is keeping the Culzean field in the UK which it also bought from Maersk. The field, located on Block 22/25a, 230 kilometers off the coast of Aberdeen, in the UK, started production in June.
Total equity production in the UK was of 179,000 boe/d in 2018. It principally comes from operated offshore fields in three major zones: the Alwyn/Dunbar area in the Northern North Sea, the Elgin/Franklin area in the Central North Sea, the Laggan-Tormore area in the West of Shetland area.
See below the fields being sold to Petrogas NEO UK, and the corresponding Total ownership prior to the sale.