France’s energy giant Total SA has signed an agreement with Kuwait Foreign Petroleum Exploration Company (KUFPEC) to divest its remaining 15 per cent interest in the Gina Krog field in Norway
This agreement builds on the 2016 transaction between Total and KUFPEC concerning Norwegian North Sea assets, which included a 15 per cent interest in Gina Krog. The overall consideration for both deals exceeds US$600mn.
Upon completion of the sale, Total will no longer have an interest in the Gina Krog field, while KUFPEC will have a 30 per cent stake alongside the operator Statoil with 58.7 per cent. PGNiG Upstream International will have eight per cent stake, and Aker BP will hold 3.3 per cent of share.
“In the framework of our portfolio management and optimisation of the allocation of capital, we have decided to fully divest our interest in the Gina Krog project and focus on other opportunities in Norway, which remains a key country for Total,” said Arnaud Breuillac, president for Exploration & Production in Total.
“With the recent acquisition of Maersk Oil & Gas, announced on 21 August, the group’s position in the North Sea will be significantly strengthened, in particular in Norway, with the participation in the development of the giant Johann Sverdrup field,” he added.
Being presented in Norway for more than 50 years, Total has played a major role in the development of a number of large fields on the Norwegian Continental Shelf. The company holds interests in 85 production licenses including Gina Krog. The affiliate Total E&P Norge AS, which is located in Stavanger, is one of the largest contributors to the group’s equity production with 235,000 boepd in 2016.
