French oil and gas major Total has agreed to sell its interests in two North Sea pipelines and a natural gas processing plant for £585 million ($897 million).
The FUKA and SIRGES pipelines and St. Fergus Gas Terminal in Scotland will be purchased from Total E&P U.K. by North Sea Midstream Partners.
“Transferring ownership to an entity specializing in midstream U.K. assets creates value for us and ensures a long and bright future for the facilities,” commented Patrick de La Chevardière, chief financial officer at Total.
The St. Fergus Gas Terminal is a three-train processing plant with a capacity of 2,648 million cubic feet of gas per day (Mmscf/d).
FUKA is a 362-kilometer, 32″ gas pipeline that was originally constructed in 1977 to connect the Frigg Field on the UK-Norway median line to the St. Fergus Gas Terminal.
Although the Frigg Field has since been decommissioned, the FUKA pipeline is still operational, delivering gas from more than 20 fields in the Northern North Sea to the terminal at St Fergus.
The Shetland Island Regional Gas Export System (SIRGES) is a 234-kilometer, 30″ gas pipeline with a capacity of 665 Mmscf/d, connecting the Shetland Gas Plant to the FUKA pipeline. It is expected to start operating by the end of 2015.
Total holds a 100 percent operated interest in the FUKA pipeline and the St. Fergus terminal. It holds a 67 percent operated interest in the SIRGES pipeline alongside Dong E&P (UK) Limited (18.3 percent), Chevron North Sea Limited (7.2 percent) and OMV (UK) Limited (7.5 percent).
Following the acquisition, North Sea Midstream Partners will engage infrastructure specialist px Group to provide certain operations and maintenance services.