Total SA signed an agreement to sell its 30% stake in Société des Transports Pétroliers par Pipelines to crude oil and refined product storage operator Pisto SAS for $290 million, according to an Aug. 5 news release from the company. The transaction is still subject to regulatory approvals.
"Rather than own infrastructure assets, [Total's] aim is to hold contracts to use such infrastructure when needed to manage its industrial assets. This sale will help us achieve our target of divesting $5 billion in assets over the period 2019-2020," CFO Jean-Pierre Sbraire said.
After the closing of the deal, Total will hold a 5.55% interest in the French pipeline network and continue to use the infrastructure under the current terms to carry products from the Normandy and Grandpuits refineries.
Pisto will have a 74% stake in the Trapil infrastructure after the completion of the transaction. It currently holds the majority interest of 44% in the pipeline network.
Société des Transports Pétroliers par Pipelines was created to operate a pipeline and auxiliary installations to transport refined petroleum products between the regions of Basse-Seine and Paris. It is composed of 1,375 kilometers of pipe, 28 pumping stations and 27 delivery terminals.