December 10, 2013 - 6:44 AM
CALGARY - Talisman Energy Inc. says it has sold its stake in a Colombia pipeline for approximately US$595 million.
The Calgary-based oil and gas company says the 12 per cent interest in the Ocensa Pipeline, which was held by two affiliates, was sold to an investment group led by Advent International.
The sale was part of a continuing effort by Talisman to reduce its debt and unlock the company's value.
In March, Talisman (TSX:TLM) set a target of getting rid of between $2 billion to $3 billion of its assets to strengthen its balance sheet.
The oil producer says it will transport its own crude through the line, with its affiliates retaining the rights to transport 63,000 barrels per day.
"Through this transaction, we have unlocked net value from our portfolio and retained our crude transportation rights," said Hal Kvisle, president and CEO of Talisman Energy.
With the purchase, the group led by Advent now has a 22 per cent stake in Ocensa.
Talisman has been faced with increasing pressure since billionaire investor Carl Icahn revealed in October that he bought a six per cent interest in the company.
Earlier this month, two of Icahn's representatives joined the company's board, increasing the activist investor's involvement in the oil and gas company's key decisions.
One of Icahn's representatives will sit on the board committee searching for a successor to Kvisle, who plans to step down next year.
Kvisle took the reins of the company last year and has since set out a new strategy that has honed its focus on the Americas and Southeast Asia.
Last month, Talisman announced it would sell 75 per cent of its assets in northeastern B.C.'s Montney formation to Progress Energy Canada Ltd., a subsidiary of Malaysia's Petronas, for $1.5 billion.
News from © The Canadian Press, 2013