France: Total sells interest in pipeline network

Paris, August 5 - Neftegaz.RU. Total has signed an agreement to sell a 30% interest in Société des Transports Pétroliers par Pipelines (Trapil) to Pisto for $290 million.

“The sale of Total’s interest in this infrastructure reflects its active portfolio management strategy. Rather than own infrastructure assets, the Group’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,” commented Jean-Pierre Sbraire, Chief Financial Officer of Total.

Following the transaction, which is subject to French regulatory approvals, Total will remain a minority shareholder with an interest of 5.55% and will continue to use Trapil infrastructure under the current terms and conditions to carry products from the Normandy and Grandpuits refineries.

Trapil was created by the French government in 1950 to build and operate a pipeline and auxiliary installations to transport refined petroleum products between the Basse-Seine and Paris regions. Trapil is Europe’s oldest, largest civilian pipeline network, comprising 1,375 km of pipe, 28 pumping stations and 27 delivery terminals.

Pisto is a leading independent crude oil and refined product storage operator in France through its maritime terminals and inland depots, and the 4th-largest in Northwestern Europe. Pisto is already the main shareholder of Trapil, holding a 44% stake before the transaction.