Total to buy stake in Colorado shale
France's Total SA plans to help commercialize Colorado oil shale by acquiring a 50% interest in IDT Corp.'s American Shale Oil LLC (Amso).
By OGJ editors
HOUSTON, Jan. 15 -- France's Total SA plans to help commercialize Colorado oil shale by acquiring a 50% interest in IDT Corp.'s American Shale Oil LLC (Amso).
The transaction is expected to close during the first quarter. The transaction's value was not immediately disclosed.
The agreement calls for Total and IDT, a multinational holding company, to jointly develop produce and commercialize shale oil using a new in-situ technology on Amso's federal research lease acreage in western Colorado.
Total will provide funding during the research, development, and demonstration phase of the project, and technical assistance throughout the life of the project.
Amso is going to manage operations during the RD&D phase, and then Total will assume management responsibilities during the subsequent commercial phase.
"Our investment in Amso furthers our commitment to developing unconventional hydrocarbons," said Yves-Louis Darricarrere, Total's E&P president.