TotalEnergies Sells 25.5 Pct of Scotland Wind Farm to PTTEP - Rigzone News

TotalEnergies Sells 25.5 Pct of Scotland Wind Farm to PTTEP | Rigzone

TotalEnergies Sells 25.5 Pct of Scotland Wind Farm to PTTEP

TotalEnergies SE has signed a deal to divest a 25.5 percent equity stake in a 1,075-megawatt wind project offshore Scotland to Thailand’s national oil and gas company for GBP 522 million ($689 million).

The 114-turbine Seagreen, which TotalEnergies calls the world’s deepest fixed-bottom wind farm, has been fully operational since October, as announced by Seagreen Wind Energy Ltd. at the time. It can power nearly 1.6 million homes, or two-thirds of households in Scotland, according to Seagreen.

Upon the completion of the farm-out, subject to regulatory approvals, TotalEnergies will have a 25.5 percent ownership, Thailand’s PTT Exploration and Production Public Co. Ltd. (PTTEP) 25.5 percent and operator SSE PLC 49 percent.

“This transaction implies an enterprise value of $4.3 billion (100 percent), equivalent to a multiple of 13 times the expected average EBITDA [earnings before income tax, depreciation and amortization) over the next 5 years, depending on future market prices”, the French energy giant said in a recent press release.

TotalEnergies said the divestment is “in line with its renewables business model”. It has set a target of achieving a 12 percent return on average capital employed in its power segment, similar to its oil and gas business, according to the company’s outlook report September.

TotalEnergies currently has 22 gigawatts in installed renewable power generation, according to the company. As part of its future growth strategy, TotalEnergies is increasing investment in the power sector as it shifts away from oil and gas to ensure profitability.

In its outlook report September, it said, "TotalEnergies is replicating its integrated Oil & Gas business model into electricity to achieve a ROACE [return on average capital employed] of ~12 percent, equivalent to upstream Oil & Gas ROACE at 60 $/b [dollars per barrel], above the 'utility' model traditional returns".

It declared in that report a target of over 100 terawatt hours of power generation by 2030 with investments of $4 billion a year.

"The Company is building a world class cost-competitive portfolio combining renewable (solar, onshore wind, offshore wind) and flexible assets (CCGT, storage) to deliver clean firm power to its customers", TotalEnergies said then.

Simultaneously PTTEP and TotalEnergies inked a memorandum of understanding to explore potential collaboration in renewables development.

“The successful investment in the Seagreen Offshore Wind Farm project marks a significant step for PTTEP in diversifying into the high-growth potential clean energy sector”, PTTEP chief executive Montri Rawanchaikul said in a separate news release.

“The company will leverage our expertise in E&P [exploration and production] offshore project management, building upon existing partnerships to collaborate on the project”, Rawanchaikul added. “Meanwhile, PTTEP will be able to gain valuable experience in offshore renewable energy and be ready for further investments in clean energy business.

“This investment entails low-level risks as it is in the operational phase, with stable cashflow, works in partnership with global experienced players and is in the country with supportive policies to propel continuous development of the offshore wind market”.

To contact the author, email jov.onsat@rigzone.com

What do you think? We’d love to hear from you, join the conversation on the Rigzone Energy Network.

The Rigzone Energy Network is a new social experience created for you and all energy professionals to Speak Up about our industry, share knowledge, connect with peers and industry insiders and engage in a professional community that will empower your career in energy.

- TotalEnergies Sells 25.5 Pct of Scotland Wind Farm to PTTEP
- Founders to Inject $1.12B into Adani Green via Warrants
- Brazil's Enauta Buys 23 Percent Stake in Shell Fields in Campos Basin
- Finnish Utility Affirms Damaged Pipeline Can Restart April 2024
- Baron Oil Inks MoU for Farm-Up of Timor-Leste PSC
- Gazprom Approves Plan for Gas Flow Measurement Projects
- Gazprom Says Connected Nearly 900,000 Users to Network Gas in 2023
- Rex JV Inks PSC for West Africa Oil Block
- Nigeria's Riverside Eyes LNG Supply Deal to South Africa
- Block Energy Eyes Farm-Out of Georgia Asset

- Shell Cuts More Jobs amid Cost-Cutting Drive
- ING Ditches Oil & Gas, Aims to Triple Renewables Financing by 2025
- EIA Lowers Henry Hub Price Forecast
- Mubadala Energy Announces Major Gas Discovery
- UK Court Voids $11B Demand on Nigeria over Failed Gas Deal
- EU States Set Voluntary Wind Energy Targets
- Baltic States Vow before EU to Delink from Russian Grid by February 2025
- DOE Earmarks $890MM for Carbon Capture Demo Projects
- Oil Drillers Snap Up Gulf of Mexico Leases Ahead of Biden Pause
- Angola Announces Exit From OPEC Amid Spat Over Oil Quotas

- USA Oil Supply Now Exceeding High Expectations
- What Does Milei's Presidential Win Mean for Oil and Gas in Argentina?
- Chemical Tanker Struck by Missile
- OPEC+ Outcome a Bittersweet Victory for Saudis
- PTTEP Makes 3 O&G Discoveries Offshore Malaysia
- USA Red Sea Destroyer Takes Down Drone Wave
- Invictus Makes First Discovery in Zimbabwe
- Bureau of Land Management Seeks Public Comment for Oil, Gas Lease Sales
- Equinor Exits Nigeria
- 50 Oil Firms Join Charter for Decarbonization at COP28