Total SA affiliate Total E&P USA has agreed to sell its 25% interest in Cardinal Gas Services LLC, a midstream company in Ohio’s Utica shale, to E1 Corp. and a consortium led by Samchully, both from South Korea, for $400 million plus an estimated price adjustment of $50 million.
Cardinal, established in 2011, gathers and transports natural gas production from within the Utica. The company will continue to provide Total the same gas gathering and transportation services after the deal closes, which is expected in October.
Total notes that it will remain an active participant in the Utica through its upstream joint venture with Chesapeake Energy Corp. and Enervest Ltd. where Total holds 25% interest (OGJ Online, Jan. 3, 2012).
In the US, the company also holds 25% interest in a Chesapeake-operated JV in the Barnett shale, and 33.3% interest in Chinook field and 17% interest in Tahiti field in the Gulf of Mexico. Total’s overall US production in 2013 was 60,000 boe/d.
The company on Sept. 22 reported plans to divest $10 billion in assets during 2015-17 in an effort to improve cash flow and enforce stricter financial discipline (OGJ Online, Sept. 22, 2014).
