Total sells Gabon assets and looks to Iran LNG project

Total sells Gabon assets and looks to Iran LNG project

Energy major Total (LSE:TTA) has announced the US$350 million sale of its mature assets in Gabon to Anglo-French company Perenco, while the French multinational is also in talks to buy a multi-million dollar stake in an Iranian LNG facility.

This latest re-shuffling of company assets comes as Total looks to take advantage of stabilising oil prices and further develop its natural gas reserves.

The disposal in West Africa includes five fields in which Total has an interest, as well as Gabonese pipeline networks, with the divestment representing about 13,000 barrels of oil per day.

Arnaud Breuillac, president of exploration and production for Total said: “In a context of volatile Brent prices where reducing the breakeven of our operations is a top priority, this agreement demonstrates our ability to capture value through the disposal of mature assets.”

Total’s interest in Iran’s partly-built LNG export facility Iran LNG is dependent on a discount rate offered to the pre-sanctions price in exchange for reviving the stalled project.

Subject to meeting requirements, Total aims to commit $2 billion to develop the 11th phase of the South Pars field, which contains over 14 trillion cubic metres of gas.

The South Pars field is the Iranian part of the gas field, which is shared with Qatar and represents the largest LNG field in the world.