Total S.A. Australia: In Line with Its Discipline on Capital Allocation, Total Reduces Its Stake in Ichthys LNG by 4%
December 13 2018 - 2:22AM
UK Regulatory
TIDMTTA
Total (Paris:FP) (LSE:TTA) (NYSE:TOT) has signed an agreement to
divest a 4% interest in the Ichthys liquefied natural gas (LNG)
project in Australia to operating partner INPEX for an overall
consideration of 1.6 billion USD. The transaction, which is subject
to Australian regulatory approvals, reduces Total's interest in the
asset to 26%.
"This transaction is part of our constant portfolio review to
optimize our capital allocation. Ichthys is part of a wave of
Australian LNG projects, which have unfortunately experienced major
cost overruns and delays during their construction phase. The final
CAPEX estimate provided by the Operator is around 45 B$ to be
compared to an updated figure around 40 B$ in 2017. In line with
our capital discipline policy, we have therefore decided to control
our capital employed in Ichthys by monetizing a 4% stake after the
project start-up and de-risking," commented Arnaud Breuillac,
President, Exploration & Production at Total. "We are of course
committed to the Ichthys project with our remaining 26% interest
contributing to our growth both in production and cash flow from
2019 and beyond. LNG is a core area for Total - the world
second-largest privately owned player with a strong pipeline of low
breakeven pre-FID projects in our portfolio".
At full capacity, the Ichthys offshore facilities and the
two-train onshore liquefaction plant will supply 8.9 million tons
per year (Mt/y) of LNG and 1.65 Mt/y of liquefied petroleum gas
(LPG), along with 100,000 barrels of condensate per day.
The first LNG cargo was exported on the October 22nd 2018, the
first offshore condensate cargo was exported on October 1st 2018,
and the first LPG cargo was exported on the November 16th 2018. The
two LNG trains are now fully operational.
About Total
Total is a major energy player, which produces and markets
fuels, natural gas and low-carbon electricity. Our 100,000
employees are committed to better energy that is safer, more
affordable, cleaner and accessible to as many people as possible.
Active in more than 130 countries, our ambition is to become the
responsible energy major.
* * * * *
Cautionary note
This press release, from which no legal consequences may be
drawn, is for information purposes only. The entities in which
TOTAL S.A. directly or indirectly owns investments are separate
legal entities. TOTAL S.A. has no liability for their acts or
omissions. In this document, the terms "Total" and "Total Group"
are sometimes used for convenience where general references are
made to TOTAL S.A. and/or its subsidiaries. Likewise, the words
"we", "us" and "our" may also be used to refer to subsidiaries in
general or to those who work for them.
This document may contain forward-looking information and
statements that are based on a number of economic data and
assumptions made in a given economic, competitive and regulatory
environment. They may prove to be inaccurate in the future and are
subject to a number of risk factors. Neither TOTAL S.A. nor any of
its subsidiaries assumes any obligation to update publicly any
forward-looking information or statement, objectives or trends
contained in this document whether as a result of new information,
future events or otherwise.
Total
Media Relations: +33 1 47 44 46 99 | presse@total.com |
@TotalPress
Investors Relations: +44 (0)207 719 7962 | ir@total.com
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(END) Dow Jones Newswires
December 13, 2018 03:22 ET (08:22 GMT)
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