Energy group Total sells 4 pct of Ichthys to Inpex for $1.6 bln (updated)
13/12/2018 08:55
(Adds detail and background)
PARIS, Dec 13 (Reuters) - French energy company Total
TOTF.PA said it has agreed to sell a 4 percent stake in its
Australian Ichthys liquefied natural gas (LNG) project to
Japanese partner Inpex 1605.T for $1.6 billion, following cost
overruns.
"This transaction is part of our constant portfolio review
to optimize our capital allocation," Arnaud Breuillac, president
of exploration and production at Total, said in a statement on
Thursday. "Ichthys is part of a wave of Australian LNG projects,
which have unfortunately experienced major cost overruns and
delays during their construction phase."
Breuillac, nevertheless, said Total remained committed to
the Ichthys project and the French company would be holding on
to its remaining 26 percent stake in Ichthys.
Inpex has a majority stake of around 66 percent in the $40
billion project in northwestern Australia, which has seen
multiple delays and significant cost overruns due to technical
problems.
The project's other minority shareholders include CPC
CHIP.UL , Tokyo Gas 9531.T , Osaka Gas 9532.T , Kansai
Electric 9503.T , JERA Corp and Toho Gas 9533.T .
At full operational capacity, Ichthys is expected to produce
8.9 million tonnes of LNG a year, along with about 1.7 million
tonnes of LPG and about 100,000 barrels per day of condensate,
an ultra-light form of crude oil. urn:newsml:reuters.com:*:nL3N1WW2P3
(Reporting by Sudip Kar-Gupta;
Editing by Susan Fenton)
((sudip.kargupta@thomsonreuters.com; +33 1 49 49 53 84;))