Total’s affiliate, Total E&P USA, has signed an agreement to sell its 25% interest in Cardinal Gas Services LLC, a midstream company in Ohio’s Utica shale play, to E1 Corp. and a consortium led by Samchully, both from Korea, for $400 million plus an estimated price adjustment of $50 million.
“The sale of this non-strategic asset reflects the Group’s active portfolio management and enables us to unlock value while continuing with the development of our resources in the Utica basin as planned,” said Olivier de Langavant, senior vice president, Strategy Business Development R&D, at Total Exploration and Production.
Since its establishment in 2011, Cardinal has built a significant part of the gas infrastructure in the Utica basin, where it gathers and transports the Utica’s fast growing production. Following this transaction, Total will remain an active participant in the Utica play through its upstream joint venture with Chesapeake and EnerVest, and Cardinal will continue to provide to Total the same gas gathering and transportation services.
This transaction is expected to close in October.