Total said Thursday its sale of non-core assets in the UK North Sea to NEO Energy is contributing to its action plan amid the “economic crisis,” Kallanish Energy reports.
The firm said in a statement the sale, announced in May, was completed following regulatory approval and partner agreement. The divestment “demonstrates our ability to relentlessly lower the breakeven point of our portfolio,” added Total’s CFO Jean-Pierre Sbraire.
The completion had been announced by NEO Energy earlier in the week, but the companies didn’t disclose financial details of the revised deal, which in July 2019 was at $635 million.
The portfolio of both operated and non-operated assets in four producing areas of the British North Sea, produced around 23,000 barrels of oil equivalent per day in 2019. The acquisition also adds reserves of roughly 51 million barrels of oil equivalent to NEO Energy.
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