According to the statement, the transaction remains subject to Australian regulatory approvals, and reduces Total’s interest in the asset to 26%.
Arnaud Breuillac, President, Exploration & Production at Total, said: “This transaction is part of our constant portfolio review to optimise our capital allocation. Ichthys is part of a wave of Australian LNG projects, which have unfortunately experienced major cost overruns and delays during their construction phase. The final CAPEX estimate provided by the Operator is around US$45 billion to be compared to an updated figure around US$40 billion in 2017. In line with our capital discipline policy, we have therefore decided to control our capital employed in Ichthys by monetising a 4% stake after the project startup and de-risking.
“We are of course committed to the Ichthys project with our remaining 26% interest contributing to our growth both in production and cash flow from 2019 and beyond. LNG is a core area for Total – the world second-largest privately owned player with a strong pipeline of low breakeven pre-FID projects in our portfolio.”
Once it reaches full capacity, Total claims that the Ichthys offshore facilities and the two-train onshore liquefaction plant will supply 8.9 million tpy of LNG, as well as 1.65 million tpy of LPG and 100 000 bpd of condensate.
The project exported its first LNG cargo on 22 October this year, and both LNG trains are now fully operational.
Read the article online at: https://www.lngindustry.com/liquefaction/13122018/total-reduces-its-stake-in-ichthys-lng-by-4/