French multinational oil company Total has announced that in line with its strategy of actively managing its asset portfolio and its objective to divest $5 billion during the period 2019-2020, it is pursuing the divestments of several non-core assets in both Exploration-Production (Brunei) and Marketing & Services (Sierra Leone and Liberia).
“These divestments represent a global value of more than 400 million US Dollars,” Total said on Tuesday.
The company disposed of its interest in a Brunei offshore block following the approval of the competent authorities. “Total has closed the sale to Shell of its wholly owned subsidiary Total E&P Deep Offshore Borneo BV, which holds an 86.95% interest in Block CA1,” the company said. Total was the operator of the block, alongside partners Murphy Oil (8.05%) and Petronas (5%) and the production of this block was 5 kboe/d net to Total in 2019.
Regarding its Sierra Leone and Liberia assets, Total has signed an agreement to sell its marketing and services businesses in Liberia and Sierra Leone to Conex Oil & Gas Holdings Ltd., a regional player in petroleum products import, distribution and supply chain management in West Africa. The deal consists of a network of 63 service stations, general trade fuel sales and petroleum products import and storage operations.
Total said that the sale of these two affiliates is expected to be completed in the second quarter of 2020.
“These sales will contribute to Total’s ongoing divestment program and demonstrate our ability to relentlessly high-grade our portfolio,” Jean-Pierre Sbraire, Chief Financial Officer of Total, said.
“In the current context of low oil prices, these transactions support the action plan announced to weather the crisis,” he added.