French integrated oil and gas firm Total has agreed to divest its wholly-owned subsidiary Total E&P Deep Offshore Borneo (TEPDOB) to Shell in a deal valued at $300m.
Total E&P Deep Offshore Borneo owns 86.95% interest in Block CA1, located 100km off the coast of Brunei.
Covering an area of 5,850km², the Block CA1 is located in water depths ranging from 1,000m to 2,500m. The block is also owned by Murphy Oil with 8.05% stake and Petronas with 5% interest.
The sale forms part of Total’s non-core assets disposal strategy
Total Exploration & Production president Arnaud Breuillac said: “This transaction fits with our strategy of actively managing our portfolio and will contribute to our program to dispose of $5 billion of non-core assets over the period 2019-2020.”
Subject to approval by the competent authorities, the transaction is planned to be completed by December 2019.
The French firm also operates in Brunei through Total E&P Borneo (TEPB), which operates the Block B Joint Venture (JV) with a 37.5% stake. Other partners in the JV include Shell Deepwater Borneo with 35% stake and PB Expro holding 27.5% interest.
Earlier this month, Total has launched its first large liquefied natural gas (LNG) bunker vessel following signing a long-term charter contract with Mitsui O.S.K Lines (MOL).
The French firm said it plans to operate the bunker vessel in Northern Europe to supply LNG to commercial vessels for a period of at least 10 years.
Scheduled for delivery in 2020, the new bunker vessel is expected to supply LNG to commercial vessels including CMA CGM’s nine newly built large containerships in Europe-Asia trade with 300,000 tons per year capacity.
Commenting on the move, Total marketing and services president said Momar Nguer said: “Developing infrastructure like this giant bunker vessel is essential to allow LNG to become a widely used marine fuel.
“This first ship demonstrates our commitment to offering our customers both more environmentally friendly fuels and the associated logistics. Thanks to this pioneering investment, Total is making a positive contribution to the sustainable evolution of global shipping.”
