Energy major Total has announced the sale of its 30% interest in Société des Transports Pétroliers par Pipelines (Trapil) to crude oil storage operator Pisto for €260 million.
Trapil was created by the French Government in 1950 to build and operate a pipeline to transport refined petroleum products between the Basse-Seine region and Paris. The pipeline network is the oldest in Europe, comprising 1,375km of pipe, 28 pumping stations and 27 delivery terminals.
“The sale of Total’s interest in this infrastructure reflects its active portfolio management strategy,” commented Jean-Pierre Sbraire, CFO of Total. “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 [€4.47 billion] in assets over the period 2019-2020.”
Following the transaction, which is subject to French regulatory approvals, Total will remain a minority shareholder with an interest of 5.55%. The energy company will also continue to use Trapil infrastructure to carry products from refineries in Normandy and Grandpuits.
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