Total sells minority interests in West of Shetland fields
PARIS -- Total is to sell 20% of its interests in Laggan, Tormore, Edradour and Glenlivet fields, in the West of Shetland area, to SSE E&P UK Limited for around $876 million (£565 million).
Following completion of the transaction, Total will hold a 60% operated interest in Laggan, Tormore, Edradour and Glenlivet fields, alongside partners DONG E&P (UK) Limited (20%) and SSE E&P UK Limited (20%).
The sale also includes 20% of Total’s interest in the Shetland Gas Plant and interests in several exploration licenses in the West of Shetland area, including the Tobermory discovery.
“The sale of these minority interests is aligned with Total’s portfolio management strategy and target of divesting $5 billion of assets in 2015. It allows us to capitalize fully on this new deep offshore development, while retaining a majority interest and operatorship,” commented Arnaud Breuillac, Total’s president of E&P. “With the upcoming start-up of Laggan, followed by Tormore, Edradour and Glenlivet in the coming years, Total is opening up a new frontier area for gas production in the United Kingdom.”
Laggan and Tormore
Laggan and Tormore fields are around 140 km west of the Shetland Islands on Blocks 206/1a, 205/4b and 205/5a, in 600 m of water. Development of the fields was launched in 2010, and first gas is expected in the coming months. The development concept consists of a 140-km tie-back of five subsea wells to the new onshore Shetland Gas Plant, with a peak production rate of 500 MMcfd.
Edradour and Glenlivet
Development of Edradour and Glenlivet fields was launched in 2014. The Edradour discovery is 75 km northwest of Shetland on Block 206/4a, in 300 m of water. The Glenlivet discovery is north of Edradour on Block 214/30a, in 400 m of water. Edradour will be developed by converting the discovery well into a production well, connected to the main Laggan-Tormore flowline by a 16-km subsea tie-back. Glenlivet will be developed via two wells and a 17-km production pipeline tied back to Edradour. Edradour is expected to start up in 2017, followed by Glenlivet in 2018.
