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TotalEnergies UK assets to be purchased by Prax are still unsold

By America Hernandez

PARIS, 2 July - TotalEnergies West Shetland Offshore assets, which it sold to Prax Group in the past year, remain under French oil major ownership. They will therefore not be affected by liquidation proceedings that affect the British company.

TotalEnergies EP UK stated that the transaction to sell the West of Shetland Asset to Prax is not yet complete and we are still the operators of the Shetland Gas Plant as well as the related fields.

TotalEnergies agreed to transfer employees from TotalEnergies to Prax in exchange for a portfolio mature offshore fields that produce about 7,500 barrels oil equivalents per day. The deal also included exploration licenses and a natural gas plant.

State Oil, the parent company of Prax Group, and Prax's Lindsey Refinery in Britain have entered liquidation proceedings. An administrator said that all financial options are being considered. These included the sale of Prax’s upstream and retail businesses in Britain and Europe.

The North Sea Transition Authority, the British oil and natural gas regulator (NSTA), declined to comment whether or not the sale of TotalEnergies assets by Prax would proceed in light of the insolvency proceedings.

The NSTA referred back to its rules for change of ownership in oil and gas assets. These state that the regulator is concerned about the financial and technological capability of the potential buyer when assessing the transaction.

(source: Reuters)