France’s Total agreed Monday to sell its stake in the Schwedt refinery to Russia’s Rosneft for $300 million.
Rosneft will pick up Total’s 16.67 percent interest in the refinery, located in northeastern Germany.
The stake will be in addition to Rosneft’s current 18.75 percent stake in the facility that it holds indirectly.
The sale price excludes working capital and remains subject to customary approvals.
“Monetizing this non-core asset also contributes to the Group’s accelerated disposal program in 2015 and demonstrates Total’s commitment to actively manage its portfolio across all segments,” President of Total Refining & Chemicals Philippe Sauquet said.
Sauquet added that the sale is in line with Total’s five year plan to reduce its European and petrochemical capacity by 20 percent that was announced in 2012.
The Schwedt Refinery has a capacity of 12 million tons per year and is owned by Shell with a 37.5 percent interest.
Rosneft currently holds an indirect interest of 18.75 percent.
BP holds an 18.75 percent interest and Italy’s Eni holds an 8.33 percent interest.