Total has agreed to offload certain non-core operated and non-operated assets in four producing areas in the UK North Sea for $635m.
The ten assets are located in the Eastern North Sea and include the following fields: Dumbarton (100% interest sold), Balloch (100%), Lochranza (100%), Drumtochty (100%), Flyndre (65.94%), Affleck (66.67%), Cawdor (60.6%) – operated by Total and GoldenEagle (31.56% interest sold), Scott (5.16%), Telford (2.36%) operated by CNOOC.
In March 2018, Total bought the ten fields from Maersk Oil for $7.45bn.
The transaction remains subject to approval from the relevant authorities and is expected to close in December 2019.
Total E&P President, Arnaud Breuillac said: “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.”
Petrogas CEO, Usama Barwani said: “Five years back, Petrogas stepped into Europe by acquiring Chevron’s assets in the Netherlands, opening a new international heartland with vision of consolidation and growth in the North Sea. “This acquisition in the UK is a significant step in line with a wider vision, adding material asset base, a diverse portfolio and valuable talent pool.”
Kingsuk Sen, Petrogas CCO and VP for Europe, said his firm “intends to build on the current Aberdeen presence” and that no redundancies would result from the deal, which is still subject to approval by authorities. “We will be looking for more staff as there are gaps that we need to fill to grow the asset base”.
Total is keeping its Culzean “mega-project” in the central North Sea, which is expected to produce 5% of the UK’s total gas demand at its peak.