France energy group Total has signed an agreement with crude oil storage operator Pisto to sell 30 percent stake in the Trapil pipeline network. The agreement is estimated to be worth $290 million.
“The sale of Total’s interest in this infrastructure reflects its active portfolio management strategy. Rather than own infrastructure assets, the Group’s aim is to hold contracts to use such infrastructure when needed to manage its industrial assets. This sale will help us achieve our target of divesting $5 billion in assets over the period 2019-2020,” Chief Financial Officer Jean-Pierre Sbraire at Total told the media.
However, France’s authorities are yet to approve the transaction. After the competition of the transaction, Total will remain a minority shareholder in the asset with an interest of 5.55 percent. According to the agreement, Total will continue to use the Trapil pipeline network to carry products from the Normandy and Grandpuits refineries.
Total recently signed an agreement to sell several non-core North Sea oil assets to Petrogas for $635 million.
Total posted a net income of $2.89 billion in the second quarter of 2019, a 19 percent drop from the same period last year. The company’s adjusted net income during the first half of the year is $5.65 billion, which is also a 12 percent drop quarter-on-quarter.
Trapil was established by the French government in 1950 to transport petroleum products between the Basse-Seine and Paris regions.
According to reports, Total has made substantial progress to develop LNG projects in Papua New Guinea. Total is set to collaborate with American multinational oil and gas corporation Exxon on the project.