French oil giant 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% 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% to 46.2%.
The partners in Elgin/Franklin will be as follows: EFOG (Total 100%) 46.2%; ENI 21.8%; BG 14.1%; E.ON Ruhrgas 5.2%; Esso Exploration & Production 4.4%; Chevron 3.9%; Dyas 2.2%; and Summit Petroleum 2.2%.
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 (boe/d).
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% 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 kboe/d. This acquisition firmly reflects Total’s strategy of ongoing optimisation of its asset portfolio. In parallel, we have started in the UK a programme of divestment of non-strategic fields which we don’t operate.”
[mappress] Offshore Energy Today Staff, December 7, 2011; Image: Total