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Released August 19, 2020 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--French oil and gas major Total SE has inked separate deals to shed its U.K. downstream business and its U.K. North Sea non-core assets.
The company has agreed to sell its downstream business, including its 109,000-barrel-per day (BBL/d) Lindsey Oil Refinery in North Killingholme, Immingham, Lincolnshire, and associated logistics assets to Prax Group. It has also closed a deal with NEO Energy to sell its portfolio of operated and non-operated assets in the U.K. North Sea formerly operated by Total Oil U.K. Ltd and Total E&P North Sea U.K. Ltd.
Lindsey Oil Refinery is one of the U.K.'s largest refineries which has been modernised in recent years. Employing 400 people it processes more than 20 different types of crude with an annual production of more than 7 million tonnes. Products include petrol, diesel, bitumen, fuel oil and aviation fuels that are transported across the U.K. and abroad by sea, road, rail and pipeline. The deal, for an undisclosed sum, also includes the Finaline pipeline and Killingholme loading terminal, as well as shares in a number of joint venture terminal and storage operations. Prax said it intends to retain all of the workforce.
"This transaction is in line with our forward-looking strategy for Total's European refining base, which involves focusing our investments on integrated refining and petrochemical platforms," commented Bernard Pinatel, president of Total Refining & Chemicals. "Since the sale of our British retail network in 2011, the Lindsey refinery hasn't been part of Total's downstream system, it will be put to better use within the Prax Group; an independent player with a growing U.K. network. After considering several options for the future of the Lindsey site, Total chose the one that best protects local jobs."
"The Prax Group's long-term strategy is to be fully integrated across the oil value chain from upstream to downstream," said Sanjeev Kumar, chief executive officer of the Prax Group. "Acquiring Lindsey Oil Refinery is a natural progression...providing the opportunity to integrate the refinery and associated product flows into the company's U.K. distribution and retail footprint, which operates under the Harvest Energy brand. We are committed to all Lindsey Oil Refinery employees, who are a key element for the future success of the refinery."
The sale of Total's North Sea non-core assets to NEO Energy includes a portfolio of assets in four producing areas with an average 2019 production of approximately 23,000 barrels of oil equivalent (boe) per day and "substantial development upside". The portfolio adds reserves of roughly 51 million boe to NEO Energy and the operatorship of two asset clusters, the Quad 15 and Flyndre areas, and an operator organisation of 60 experienced employees and contractors.
Paul Harris, chief operating officer and interim chief executive officer of NEO Energy, commented "The expeditious completion of this transaction is a major milestone for NEO Energy as we build a next-generation North Sea operator. I am extremely excited by the quality of both the asset portfolio and the group of over 60 outstanding professionals we have assembled. We have quickly established NEO as a leading UKCS independent."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
The company has agreed to sell its downstream business, including its 109,000-barrel-per day (BBL/d) Lindsey Oil Refinery in North Killingholme, Immingham, Lincolnshire, and associated logistics assets to Prax Group. It has also closed a deal with NEO Energy to sell its portfolio of operated and non-operated assets in the U.K. North Sea formerly operated by Total Oil U.K. Ltd and Total E&P North Sea U.K. Ltd.
Lindsey Oil Refinery is one of the U.K.'s largest refineries which has been modernised in recent years. Employing 400 people it processes more than 20 different types of crude with an annual production of more than 7 million tonnes. Products include petrol, diesel, bitumen, fuel oil and aviation fuels that are transported across the U.K. and abroad by sea, road, rail and pipeline. The deal, for an undisclosed sum, also includes the Finaline pipeline and Killingholme loading terminal, as well as shares in a number of joint venture terminal and storage operations. Prax said it intends to retain all of the workforce.
"This transaction is in line with our forward-looking strategy for Total's European refining base, which involves focusing our investments on integrated refining and petrochemical platforms," commented Bernard Pinatel, president of Total Refining & Chemicals. "Since the sale of our British retail network in 2011, the Lindsey refinery hasn't been part of Total's downstream system, it will be put to better use within the Prax Group; an independent player with a growing U.K. network. After considering several options for the future of the Lindsey site, Total chose the one that best protects local jobs."
"The Prax Group's long-term strategy is to be fully integrated across the oil value chain from upstream to downstream," said Sanjeev Kumar, chief executive officer of the Prax Group. "Acquiring Lindsey Oil Refinery is a natural progression...providing the opportunity to integrate the refinery and associated product flows into the company's U.K. distribution and retail footprint, which operates under the Harvest Energy brand. We are committed to all Lindsey Oil Refinery employees, who are a key element for the future success of the refinery."
The sale of Total's North Sea non-core assets to NEO Energy includes a portfolio of assets in four producing areas with an average 2019 production of approximately 23,000 barrels of oil equivalent (boe) per day and "substantial development upside". The portfolio adds reserves of roughly 51 million boe to NEO Energy and the operatorship of two asset clusters, the Quad 15 and Flyndre areas, and an operator organisation of 60 experienced employees and contractors.
Paul Harris, chief operating officer and interim chief executive officer of NEO Energy, commented "The expeditious completion of this transaction is a major milestone for NEO Energy as we build a next-generation North Sea operator. I am extremely excited by the quality of both the asset portfolio and the group of over 60 outstanding professionals we have assembled. We have quickly established NEO as a leading UKCS independent."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
