Total has signed an agreement to sell all of its interests in the Frigg UK Pipeline (FUKA), the Shetland Island Regional Gas Export (SIRGE) pipelines and the St. Fergus Gas Terminal to North Sea Midstream Partners for US$905 million (around £585 million), subject to the customary approvals.
“Transferring ownership to an entity specializing in midstream UK assets creates value for us and ensures a long and bright future for the facilities,” said Patrick de La Chevardière, chief financial officer at Total.
FUKA is a 362km, 32in 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 holds a 100% operated interest in the FUKA pipeline.
The St. Fergus Gas Terminal is a three-train processing plant with a capacity of 2648 MMscf/d, currently serving over 20 fields. Total holds a 100% operated interest in the terminal.
The SIRGE System is a 234km, 30in gas pipeline with a capacity of 665 MMscf/d connecting the Shetland Gas Plant to the FUKA pipeline. Total holds a 67% operated interest in the SIRGE pipeline alongside Dong E&P (UK) (18.3%), Chevron North Sea Ltd. (7.2%) and OMV (UK) Ltd. (7.5%).
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.
Image from iStock.