Total SA agreed to sell a 30% interest in Societe des Transports Petroliers par Pipelines (Trapil) to Pisto SAS for $290 million.
“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 2019-20,” said Jean-Pierre Sbraire, Total chief financial officer.
At close, which is subject to French regulatory approvals, Total will hold 5.55% and will continue to use Trapil infrastructure under the current terms and conditions to carry products from the Normandy and Grandpuits refineries.
Pisto—an independent crude oil and refined product storage operator—is the main shareholder of Trapil, holding a 44% stake before the transaction.
Trapil—created by the French government in 1950 to build and operate a pipeline and auxiliary installations to transport refined petroleum products between the Basse-Seine and Paris regions—comprises 1,375 km of pipe, 28 pumping stations, and 27 delivery terminals.