Total sells two pipelines and a terminal amid oil price crash

Subject to regulatory approvals, the assets will be bought by North Sea Midstream Partners, which owns and operates the Teesside Gas Processing Plant (TGPP) in northeast England.

But the sale should not be misinterpreted as a vote of no-confidence in the North Sea, he said.

Total’s move comes as it looks to sell off non-core assets as part of “portfolio management”.

The Frigg UK Pipeline (FUKA) was originally constructed in 1977, spans 362 kilometers and connects the now decommissioned Frigg Field on the UK – Norway median line to the St. Fergus Gas Terminal.

Total said there would be no job losses and that all members of staff at the terminal would be transferred to the new operators.

The St. Fergus Gas Terminal, on Scotland’s east coast, with a capacity of 2,648 million cubic feet of gas per day, now serves more than 20 offshore gas fields. Total holds a 100% operated interest in the terminal.

The Shetland Island Regional Gas Export System (SIRGE) is a 234-km (145-mi), 30-in. gas pipeline with a capacity of 665 MMcf/d, connecting the Shetland Gas Plant to the FUKA pipeline.

Despite the sale, Total said that it remains committed to becoming the biggest producing oil and gas company by the end of the year.

“We see midstream infrastructure as crucial to the longevity of the North Sea and firmly believe that the independent ownership of such infrastructure can help maximise the ultimate economic recovery of [UK] oil and gas reserves”, saidAndy Heppel, chief executive of North Sea Midstream Partners.

Sale of the assets, which attracted significant interest, isn’t a sign Total is pulling out of the region amid a crash in oil prices, Michael Borrell, senior vice president for Europe and central Asia at Total EandP, said on a conference call.

With the coming start-up of the Laggan-Tormore project in the West of Shetland area, Total is opening up its third hub in the UK and a new frontier gas production area for the industry.