Total announced today that it has finalized agreements with Vermilion Exploration SAS and Vermilion Pyrénées SAS to divest six producing assets in France. The assets concerned, which account for 0.15% of Total’s global production, are being transferred to an operator with recognized expertise in mature fields.
The agreement with Vermilion covers the sale of Total’s interests in the Itteville (78.7%), Vert-le-Grand (90.05%), Vert-le-Petit (100%), La Croix Blanche (100%) and Dommartin Lettrée (57%) licenses in the Paris basin, as well as the Vic Bilh (73%) license in southwestern France. Vermilion already holds interests in the Itteville, Vert-le-Grand and Vic Bilh licenses and will own 100% of them when the transaction is finalized.
In 2010, the licenses represented equity production for Total of around 3,500 barrels of oil equivalent per day. These assets are mature fields. Vermilion has a long-established presence in France and its operational experience will enable it to optimize residual production.
The divestments are part of Total’s ongoing process of optimizing its upstream portfolio to focus its internal resources on as-yet undeveloped resources having a better strategic fit with its size and expertise.
Operatorship and production rights for these licenses are expected to be transferred in January 2012. The acreage itself will be transferred after the authorities have approved the corresponding applications, which is expected to take place within 15 months.
Total to sell oil producing assets