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Total to sell UK North Sea pipeline

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World Pipelines,


French oil major Total is reportedly in talks to sell its gas pipeline in the UK's North Sea to ArcLight Capital partners, a US-based private equity firm focused on energy infrastructure.

The transaction, which may be worth about US$1 billion, is in an advanced stage of discussion.

ArcLight may make the investment through its affiliate North Sea Midstream Partners, according to reports.

Europe's third largest oil company Total unveiled a plan earlier this year to cut investments and jobs, and accelerate its asset sales programme after taking a $6.5 billion (£4.14 billion) writedown last year because of weak oil prices.

Boston-based ArcLight focuses mainly on investments in North American energy infrastructure assets.

Since its establishment in 2001, the company has invested about US$13 billion in 90 power, midstream and production assets.

The Frigg UK System, which covers about 362 km (225 miles), transports natural gas from fields across the North Sea to St. Fergus in Scotland.

Frigg is 100% owned by Total’s E&P UK Ltd unit.

Edited from various sources by Elizabeth Corner

Sources: ReutersBloomberg

Read the article online at: https://www.worldpipelines.com/business-news/29062015/total-to-sell-uk-north-sea-pipeline/

 

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