Talisman Energy Reports $595 Mln Sale Of Colombian Pipeline Interest

(RTTNews) - Talisman Energy Inc. (TLM, TLM.TO) announced Tuesday that two of its affiliates have reached agreement to sell their about 12% equity interest in the Ocensa Pipeline in Colombia to an investment group led by Advent International for a total cash consideration of about $595 million.

As part of the transaction, Other Talisman affiliates retain crude transportation rights for about 63,000 bopd. Talisman said it will use these rights to transport proprietary crude, and will generate third party revenue from surplus capacity.

Talisman Energy said that the dispositions announced by the company are part of a larger Talisman led sales process involving Total Colombia Pipeline (affiliates of Total S.A.) and CEPSA, which will result in the investment group led by Advent International acquiring an aggregate approximately 22% shareholding in the Ocensa pipeline.

"In March, I set a $2-3 billion, 18-month disposition target for Talisman," said Hal Kvisle, President and CEO of Talisman Energy.

"In November, we announced the sale of the majority of our Montney position for CDN$1.5 billion, which when combined with some small Canadian assets and our equity interest in the Ocensa pipeline, brings our sale proceeds to approximately $2.2 billion. We will use these to reduce debt and strengthen our balance sheet, and will continue to progress additional opportunities to unlock value. These transactions provide strong momentum going into 2014, where we will continue to focus on our two core regions, our four strategic priorities, and on creating sustainable shareholder value," said Hal Kvisle.