Total sells 15% stake in Congo oil exploration and production unit to Qatar Petroleum International

December 26
11:56 PM 2013

French oil major Total SA said it sold a 15% stake in its Congo exploration and production unit Total E&P Congo. The said stake was sold to a Qatari investment fund specializing in energy assets for $1.6 billion.

According to Wall Street Journal, Total has been selling non-core and mature assets or stakes over the past two years. The Paris-based petroleum firm targets divestitures worth $15 billion to $20 billion between 2012 and 2014.

The disposals are reportedly part of Total's strategy to increase cash flow and fund an exploration plan. The oil company is in a tight race with peers to find new oil and gas reserves around the world, the report said.

Investment fund Qatar Petroleum International's entry in Total E&P Congo's capital equity will also help consolidate the unit's financial capacity, the report said. Total E&P Congo is currently developing the Moho Nord deep offshore project. The said oil project is expected to start production in 2015 and to produce as much as 140,000 barrels of oil equivalent per day, the report stated.      

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