Subject to the approval of the UK authorities, TotalEnergies has signed an agreement to sell to Kistos Energy Limited a 20% interest in the Greater Laggan Area fields and in the Shetland Gas Plant in the UK, as well as interests in several nearby exploration licenses.
The oil and gas operator revealed that Kistos Energy Limited is expected to pay a firm consideration of $125 million, as well as two contingent payments, the first one up to $40 million depending on the gas price in 2022, and the second one in the event of development of a discovery on an exploration license.
In a statement, TotalEnergies noted that The Greater Laggan Area comprises the Laggan, Tormore, Glenlivet, Edradour and Glendronach fields, located around 140 kilometers west of the Shetland Islands, at water depths of 300 to 600 meters. Development of the fields was launched in 2010 and production start-up was achieved in 2016. Production from the 20% interest sold to Kistos Energy Limited was about 8,000 barrels of oil equivalent per day in 2021.
A report by Offshore Engineer notes that TotalEnergies E&P UK Limited will hold a 40% operated interest in the Laggan, Tormore, Glenlivet, Edradour and Glendronach fields, including infield facilities and the onshore Shetland Gas Plant, alongside partners Kistos Energy Limited (20%), Ineos E&P UK Limited (20%) and RockRose UKCS15 Limited (20%).
TotalEnergies is one of the country’s leading oil and gas operators, one of the UK’s largest suppliers of gas and electricity to businesses and the public sector. The Company is also present in the marketing of petroleum products including lubricants, aviation fuel, bitumen and specialty fluids.
According to the Executive Chairman of Kistos, Andrew Austin, the partnership with TotalEnergies will increase the company’s gas production and complement its strategy in the Netherlands.
TotalEnergies is present across the energy value chain in the UK. It has been present in the country for over 50 years and employs over 2,000 people. It is a global multi-energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity and is active in more than 130 countries.