France-based multinational oil and gas company Total has completed the sale of 25% interest in its Tempa Rossa oil field to Mitsui E&P Italia.
The Tempa Rossa field, which is located in the Basilicata region of southern Italy, was discovered by Total in 1989. The total proven reserves of the oil field are about 200 million barrels.
The oil field is expected to begin production in 2016 and produce 50,000 barrels of oil per day at plateau, along with 230,000 cubic meters of natural gas and 240 metric tons of LPG per day.
Total Exploration & Production Strategy, Business, Development and R&D senior vice president Olivier de Langavant said the deal will further strengthen the ties between the two companies.
"It is another step toward achieving the asset disposal objectives announced by Total for the period 2012-2014," Langavant added.
Total will retain its 50% interest in the Gorgoglione concession and operatorship, while the other 25% stake in the field is held by Shell.
Post the deal, Italy’s oil production is anticipated to increase by almost 40%.
The transfer of interest is subject to Italian authorities’ approval.