TOTAL will sell its interest in the Utica shale play in Ohio to two Korean companies for US$400 million, with an estimated price adjustment of $50 million.
The stake, a 25 per cent interest in Cardinal Gas Services, will be off loaded to E1 Corporation and a consortium led by Samchully, Total senior vice president of strategy, business development and research and development Olivier de Langavant said.
“The sale of this non strategic asset reflects the Group’s active portfolio management and enables us to unlock value while continuing with the development of our resources in the Utica basin as planned,” he said.
Total said Cardinal had built a significant part of the gas infrastructure in the Utica basin since its establishment in 2011.
“Following this transaction Total will remain an active participant in the Utica play through its upstream joint venture with Chesapeake and Enervest, and Cardinal will continue to provide to Total the same gas gathering and transportation services.”
This transaction is expected to close in October 2014 and is subject to regulatory and shareholder approvals and to customary closing conditions.
Total said it had achieved its objective of selling between US$15 billion and US$20 billion worth of assets over the 2012-2014 period in its Company Outlook, released on 22 September.
Taking into account the acquisitions made over the same period, the Group announced an additional asset sale program of US$10 billion in 2015-2017, with Total saying it would focus on strategic assets providing growth and high profitability.