Total Buys GDF Suez's Stake in Elgin/Franklin Fields
Total, operator of the Elgin/Franklin fields in the British sector of the North Sea, announces the purchase of GDF Suez's share in the two fields for an enterprise value of €590 million. This participation is held through a 22.5 percent interest in the company Elgin Franklin Oil & Gas (EFOG).
By giving Total control of the whole of the capital of EFOG, of which it previously held 77.5%, this acquisition increases its share in the Elgin/Franklin fields from 35.8 percent to 46.2 percent.
The partners in Elgin/Franklin will be as follows: EFOG (Total 100 percent) 46.2 percent; ENI 21.8 percent; BG 14.1 percent; E.ON Ruhrgas 5.2 percent; Esso Exploration & Production 4.4 percent; Chevron 3.9 percent; Dyas 2.2 percent; and Summit Petroleum 2.2 percent.
The transfer of GDF Suez's share in EFOG to Total is expected to be effective before the end of 2011.
The Elgin/Franklin fields, including West Franklin, produce an average of 140 000 barrels of oil equivalent per day (boepd).
Commenting on the acquisition, Patrice de Vivies, Senior VP E&P for Northern Europe, said, "We are a leading player in UK exploration and production. The Elgin and Franklin fields started producing in 2001 and account for 7 percent of the UK's production. These are high pressure high temperature fields whose exploitation requires strong technological expertise. They still offer important development potential; for example, the second phase of West Franklin was launched in 2010 and two new platforms are being built at the moment, with start-up planned in 2013 with a production capacity of 40 kboepd. This acquisition firmly reflects Total's strategy of ongoing optimization of its asset portfolio. In parallel, we have started in the UK a program of divestment of non-strategic fields which we don't operate."
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Total CEO: US Shale Oil Industry To See Wave Of Investment (Oct 18)
- Total's CEO Says Will Try To Move Ahead With Iran Gas Project (Oct 17)
- Total Expands Presence in Mexico (Oct 12)
Company: GDF Suez more info
- UK Awards 27 Blocks for Shale Exploration in Latest Licensing Round (Aug 18)
- European Majors Team Up to Explore Arctic (Apr 21)
- GDF Suez Says Natural Gas Discovery Made in Southeast Algeria (Apr 20)