French oil major Total said Wednesday it has rearranged financial terms of its sale of UK assets to NEO Energy, which includes the exit of Oman’s Petrogas from the deal.
“We have worked closely with HitecVision and its portfolio company NEO Energy to reconfirm our mutual commitment to completing the deal,” Total said in a statement.
The sale agreement will now have modified consideration structure and phasing of payments. The move is a response to current market conditions, while retaining the majority of the value of the transaction.
Total didn’t disclose details of the revised deal, which in July was announced at $635 million, Kallanish Energy reports. The agreement to divest the UK “non-core assets” formerly owned by Maersk Oil was signed with Petrogas NEO — arm of Oman-based conglomerate MB Holding.
The Eastern North Sea assets consist of 10 oil and gas fields – of which seven are fully owned by Total.
“We look forward to progressing swiftly to completion and for NEO Energy to take over operations. We are confident that this sale is the right thing for both parties and for the business and its employees,” said Total CFO Jean-Pierre Sbraire.
The transaction is slated to close by the third quarter 2020.
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