25% Stake in Seagreen Wind Farm for £522 Million Acquired by Thai Oil And Gas Company
Posted 22/12/2023 14:47
In a strategic move, TotalEnergies has entered into an agreement with Thailand's national oil and gas company, PTTEP, for the sale of a 25.5% equity stake in the Seagreen offshore wind farm. The transaction, valued at £522 million, results in TotalEnergies retaining a 25.5% interest in Seagreen, with PTTEP securing the same percentage and SSE Renewables maintaining a 49% stake.
Seagreen, recognized as the world's deepest fixed-bottom wind farm, boasts a total capacity of 1,075 MW. The offshore installation, operational since October, features 114 turbines capable of generating electricity to power over 1.6 million homes, equivalent to two-thirds of all homes in Scotland.
The enterprise value of the transaction stands at $4.3 billion (100%), signifying a multiple of 13 times the anticipated average earnings over the next five years, contingent on future market prices.
In addition to the equity transaction, TotalEnergies and PTTEP have formalized their collaboration by signing a Memorandum of Understanding (MoU). This MoU outlines the exploration of joint opportunities in the development of renewable energies, emphasizing a commitment to the growth and expansion of clean energy initiatives.
Patrick Pouyanné, Chair and Chief Executive of TotalEnergies, expressed enthusiasm about the partnership, stating, “After a long history of partnership in gas production in Thailand, we are delighted to welcome PTTEP as a shareholder partner in the Seagreen offshore wind farm alongside SSE, which marks a first step in our collaboration with PTTEP in renewable energies."
Furthermore, Montri Rawanchaikul, Chief Executive of PTTEP, emphasized the significance of the collaboration and its alignment with PTTEP's diversification strategy into the high-growth clean energy sector for a sustainable future.
The completion of the transaction is contingent upon obtaining applicable governmental and regulatory approvals, marking a pivotal step in advancing the shared vision for the Seagreen wind farm and fostering continued collaboration in the renewable energy landscape.