Offshore staff

PARIS – Total 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.

The transaction, which is subject to Australian regulatory approvals, reduces Total’s interest in the asset to 26%.

Arnaud Breuillac, president, Exploration & Production at Total, said: “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 billion dollar to be compared to an updated figure around $40 billion 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. 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...”

At full capacity, the Ichthys offshore facilities and the two-train onshore liquefaction plant will supply 8.9 MM tons/yr of LNG and 1.65 MM tons/yr of liquefied petroleum gas (LPG), along with 100,000 b/d of condensate.

The first LNG cargo was exported on Oct. 22, 2018, thefirst offshore condensate cargo was exported on Oct. 1, 2018, and the first LPG cargo was exported on the Nov. 16, 2018. The two LNG trains are now fully operational.

12/14/2018