PARIS, France - Total has agreed to sell its interests in the FUKA and SIRGE gas pipelines in the UK North Sea and the St. Fergus Gas Terminal north of Aberdeen to North Sea Midstream Partners for £585 million ($905 million), subject to approvals.
Patrick de La Chevardière, Total’s chief financial officer, said: “Transferring ownership to an entity specializing in midstream UK assets creates value for us and ensures a long and bright future for the facilities."
The Frigg UK Pipeline (FUKA) is a 362-km (225-mi), 32-in. gas pipeline constructed in 1977 to connect the Frigg Field (now decommissioned) on the UK - Norway median line to St. Fergus. Total has retained a 100% operated interest in FUKA which delivers gas from around 20 fields in the UK northern North Sea to the terminal.
The St. Fergus terminal is a three-train processing plant with a capacity of 2,648 MMcf/d of gas. Total again has a 100% operated interest.
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. Total has a 67% operated interest in SIRGE, the balance shared between Dong E&P (UK), Chevron North Sea and OMV (UK).
Assuming the sale is completed, North Sea Midstream Partners will have an agreement with px Group for the operation and maintenance of the assets.
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