The Trapil pipeline network in France transports refined petroleum products between the Basse-Seine and Paris regions
Total has agreed to sell 30% stake in the 1,375km long Société des Transports Pétroliers par Pipelines (Trapil pipeline network) in France to Pisto for €260m (£239.49m).
The Trapil pipeline network was created in 1950 by the French government to construct and operate a pipeline and auxiliary installations for the transportation of refined petroleum products between the Basse-Seine and Paris regions.
Considered to be the oldest and largest civilian pipeline network in Europe, Trapil is supported by 28 pumping stations and 27 delivery terminals.
The pipeline network operates three multi-product pipelines – the Le Havre-Paris pipeline (LHP), the Mediterranean Rhone pipeline (PMR), and the NATO pipelines in France (ODC).
Trapil pipeline network stakeholders
Pisto, which is a crude oil and refined product storage operator in France, already has a stake of 44% stake in the Trapil pipeline network prior to the transaction.
Total, after completion of the deal, will retain a stake of 5.55% in the pipeline network. The French oil and gas giant will continue to use the infrastructure of Trapil under the existing terms and conditions to transport products from the Normandy and Grandpuits refineries.
The other stakeholders of the Trapil pipeline network are Esso (17.2%) and Trapil employees (3.1%).
Total chief financial officer Jean-Pierre Sbraire said: “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.”
Closing of the transaction is subject to regulatory approvals from French authorities.
Last month, Total agreed to sell certain non-core operated and non-operated assets in four producing areas in the UK North Sea to Oman-based Petrogas and Norwegian private equity investor HitecVision, for $635m (£522.2m). A total of 10 fields are involved in the deal, all located in the Eastern North Sea, that were owned previously by Maersk Oil.