Total sells stake in US shale gas transport firm for up to $450 mln
23/09/2014 15:01
PARIS, Sept 23 (Reuters) - French oil major Total TOTF.PA
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.
South Korean gas seller E1 Corporation 017940.KS and a
consortium led by Korea-based Samchully 004690.KS 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. ID:nL6N0RN44S
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 CHK.N , 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.
(Reporting by Michel Rose)
((michel.rose@thomsonreuters.com; +33149495570; Reuters
Messaging: michel.rose.thomsonreuters.com@reuters.net))
Keywords: TOTAL CARDINAL/