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."
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