France's Total announced Wednesday plans to sell minority interests in a handful of West of Shetland fields as the company became the latest European oil major to release its second-quarter results. Total has agreed to sell 20 percent of its holdings in the Laggan, Tormore, Edradour and Glenlivet fields to SSE E&P UK Limited for approximately $876 million.
Total said that the sale of the minority interests is aligned with its portfolio management strategy and target of divesting $5 billion of assets in 2015.
"It allows us to capitalize fully on this new deep offshore development, while retaining a majority interest and operatorship," Arnaud Breuillac, president of exploration and production for Total.
"With the upcoming start-up of Laggan, followed by Tormore, Edradour and Glenlivet in the coming years, Total is opening up a new frontier area for gas production in the United Kingdom."
In its second-quarter results, Total reported that it made an adjusted net profit of $3.1 billion during the three months to June 30, 2015 – which was down two percent on 2Q 2014. Hydrocarbon production during the quarter was 2.30 million barrels of oil equivalent per day, compared to 2.05 million boepd in 2Q 2014.
Commenting on this performance, Total CEO Patrick Pouyanné said:
"Oil prices recovered slightly in the second quarter to about $60 per barrel but remain more than 40-percent lower than a year ago. Despite the sharply lower oil price, Total reported adjusted net income of $3.1 billion, a decrease of only two percent compared to the same period last year, thanks to productivity gains in all the business segments."
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