French oil company Total has entered into an agreement with Chinese state-run Sinochem to sell interests in oil field and pipeline assets in Colombia.
The company is selling its wholly owned Colombian subsidiary Tepma, which holds a working interest in the Cusiana field as well as a participation in the OAM and ODC pipelines in the country.
Its interest in the Cusiana field represents around 7,000 barrels of oil equivalent per day.
Total’s decision to sell these assets follows a divestiture of a 5% working interest in the Ocensa pipeline in Colombia to Petrominerales, and of another 5% to Spain-based Cepsa in July last year.
The French company still holds a 5.2 % stake in the Ocensa pipeline.
The combined value of the three transactions with Sinochem, Petrominerales and Cepsa amounts to approximately $1bn.
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By GlobalDataOlivier de Langavant, senior vice president of strategy business development for R&D at Total’s Exploration-Production unit, said: "Disposing of these mature assets and positions in transportation infrastructures is in line with our ongoing asset optimisation strategy and follows similar recent divestments such as the Gassled pipelines in Norway and mature fields in Cameroon."
Total said it will focus on exploration assets with a higher potential in Colombia and will continue its exploration activities on the Niscota and Mundo Nuevo blocks in the country.
The company holds a 50% stake in the Niscota block and a 55% interest in the Mundo Nuevo block.
