Total has signed an agreement to sell all of its interests in the FUKA and SIRGE gas pipelines at the St Fergus Gas Terminal to North Sea Midstream Partners for £583 million, subject to the customary approvals.
“The sale of these midstream transportation assets is another example of Total’s strategy of active portfolio management and the strong potential to unlock value from a range of infrastructure assets,” said Patrick de La Chevardière, Chief Financial Officer at Total.
He added: “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 gas pipeline constructed in 1977 to connect the Frigg Field on the UK - Norway median line to the St Fergus Gas Terminal.
The Frigg Field is now decommissioned but the FUKA pipeline is still operational, delivering gas from some 20 fields in the Northern North Sea to St Fergus.
Following the completion of the sale, North Sea Midstream Partners will have an agreement with px Group for the operation and maintenance of the assets.