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Total sells stake in U.S. shale gas transport firm for up to $450 million

Published 23/09/2014, 15:14
© Reuters View of the logo of French oil giant Total in front of the oil refinery of Donges
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PARIS (Reuters) - French oil major Total (PA:TOTF) has agreed to sell its 25 percent stake in Cardinal Gas Services, a gas transport company operating in Ohio's Utica shale gas basin, to a group of Korean companies for up to $450 million (274.44 million pounds).

South Korean gas seller E1 Corporation (KS:017940) and a consortium led by Korea-based Samchully (KS:004690) agreed to pay $400 million plus an estimated price adjustment of $50 million, Total said in a statement on Tuesday.

"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," the group said.

Earlier this week, Total said that it planned to sell $10 billion of assets from 2015 to 2017, having hit a target of $15-20 billion of sales in 2012 to 2014.

The deal is expected to close in October 2014, depending on regulatory and shareholder approval.

Total has two joint ventures with U.S. group Chesapeake Energy (N:CHK), one to drill for shale gas in the Utica basin in Ohio along with another partner, EnerVest, and another one in the Barnett Shale basin in Texas.

© Reuters. View of the logo of French oil giant Total in front of the oil refinery of Donges

(Reporting by Michel Rose)

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