PARIS – TotalEnergies has agreed to sell a 20% interest to Kistos in the Greater Laggan Area fields west of Shetland and the onshore Shetland Gas Plant, along with stakes in various nearby offshore exploration licenses.
The firm $125-million transaction could increase in value, depending on UK gas prices this year and a future development of the 638-bcf Benriach discovery in block 206/4a.
The Greater Laggan Area comprises the producing Laggan, Tormore, Glenlivet and Edradour fields and the undeveloped Glendronach discovery, 140 km (87 mi) west of Shetland in water depths of 300-600 m (984-1,968 ft).
Development began in 2010 with start-up achieved in 2016 from Laggan-Tormore. Production from the 20% share in all producing fields to be sold to Kistos was around 8,000 boe/d last year.
Assuming UK regulatory approvals for the transfer, TotalEnergies E&P UK will remain operator with a 40% interest in the Greater Laggan Area fields and facilities, the other partners being Kistos (20%), Ineos E&P UK (20%) and RockRose UKCS15 (20%).
Kistos plans to finance the acquisition from its internal resources and expects completion this spring.
The company also issued an update on its recent E&P activities in the Dutch North Sea. The jackup Prospector-1 arrived on location at Q11-B in late-November, with the well producing on test from two shallower horizons at total rates of more than 1,700 boe/d.
Currently the well is suspended for future use with the data to be assessed to determine whether recoverable volumes warrant a development decision.
Kistos continues to evaluate appraisal results from drilling of the Vlieland sandstone formation in the Q07 and Q10 offshore blocks on the Q10-Orion oil discovery. Rockflow Resources is assisting with the project’s Concept Assess phase.
Last year’s drilling campaign was also designed to increase output from the producing Q10-A gas field through workovers and a side track to the Q10-A04 well. These operations helped lift the company’s year-end production rate to 10,800 boe/d.