Total has sold several non-core assets in the UK part of the North Sea to the Norwegian investment fund HitecVision.
Total confirmed its commitment to finalize the sale of several non-core assets located in the British North Sea. The Norwegian investment fund HitecVision is the buyer.
The deal was first announced in July last year, and at the time, the overall consideration amounted to 635 million dollars.
“We have worked closely with HitecVision and its portfolio company NEO Energy to reconfirm our mutual commitment to conclude this agreement. The revisions we have agreed to take into account current market conditions, while preserving the overall value of the transaction. The structure of the transaction and the timing of the payments were modified, in particular with a loan bearing interest from Total to the buyer and a conditional earn-out paid to Total”, said Jean-Pierre Sbraire, Chief Financial Officer of Total.
“We plan to finalize the transaction as soon as possible so that NEO Energy will resume operations as soon as possible. We are convinced that this sale is the best option for both parties, the future of the fields and the teams concerned.”
Total acquired the assets as a part of the Maersk Oil acquisition in 2018. It includes the following fields:
Dumbarton, Balloch, Lochranza, Drumtochy, Flyndre and Affleck, as well as the CNOOC-operated fields:
GoldenEagle, Scott and Telford.
Subject to obtaining regulatory approvals, the parties plan to complete the transaction by the third quarter of 2020.
TEXT: RONNY SETSÅ