France’s Total agreed Wednesday to sell all of its interests in the FUKA and SIRGE gas pipelines and the St. Fergus Gas Terminal to UK-based North Sea Midstream Partners for about $905 million.
The Frigg UK Pipeline (FUKA) is a 362-kilometer, 32 inch gas pipeline that was originally constructed in 1977 to connect the Frigg Field on the UK – Norway median line to the St. Fergus Gas Terminal in Scotland.
The Frigg Field is now decommissioned but the FUKA pipeline is still operational, delivering gas from some 20 fields in the Northern North Sea to the terminal at St Fergus, Total said.
Total holds a 100 percent operated interest in the FUKA pipeline.
The St. Fergus Gas Terminal is a three-train processing plant with a capacity of 2.648 million cubic feet of gas per day (Mmscf/d), currently serving over 20 fields.
Total holds a 100 percent operated interest in the terminal.
“The sale of these midstream transportation assets is another example of Total’s strategy of active portfolio management and the strong potential to unlock value from a range of infrastructure assets,” Total CFO Patrick de La Chevardière said.
The Shetland Island Regional Gas Export System (SIRGE) is a 234-kilometer, 30 inch gas pipeline with a capacity of 665 Mmscf/d, connecting the Shetland Gas Plant to the FUKA pipeline.
Total holds a 67 percent operated interest in the SIRGE pipeline.
Dong E&P (UK) Limited holds a 18.3 percent stake, Chevron North Sea Limited holds a 7.2 percent stake and OMV (UK) Limited 7.5 percent stake.
“Transferring ownership to an entity specializing in midstream UK assets creates value for us and ensures a long and bright future for the facilities,” de La Chevardière added.
Following the completion of the sale, North Sea Midstream Partners will have an agreement with px Group for the operation and maintenance of the assets.