French oil firm Total said it will sell 25 percent interest in Cardinal Gas Services for $400 million, including an estimated price adjustment of $50 million, Reuters reported. Cardinal Gas Services operates in Ohio's Utica shale, which is quickly becoming a prolific production region for oil and gas companies. Total's stake in the company, which provides gathering, compression and dehydration services, will now be owned by liquefied petroleum gas firm E1 Corporation and a consortium headed by Samchully. Both E1 Corporation and Samchully are based in South Korea.
"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," Total said in a statement.
Previously, Total said it had planned to divest $15 billion to $20 billion in assets between 2012 and 2014. The company hopes to put this money toward developing 15 other projects to increase its oil production by 2.8 million barrels of oil equivalent per day by 2017.