TotalEnergies will sell its 20% interest in the UK’s Greater Laggan Area fields and Shetland Gas Plant to Kistos Energy for around USD 125 million, the French integrated energy company announced on Monday.
The initial payment of USD 125 million will be followed by two contingent payments, the first of around USD 40 million dependant on gas prices in 2022 and the second upon discoveries on the plays.
The Greater Laggan Area contains the Laggan, Tormore, Glenlivet, Edradour and Glendronach fields. The offshore plays are around 140 kilometres west of the Shetland Islands in water depths of 300-600 metres.
Production from the 20% interest was around 8,000 boepd in 2021.
Once the transaction passes approval by UK authorities, TotalEnergies will have a 40% operating interest, with partners Kistos Energy, Ineos E&P UK and RockRose UKCS15 each holding 20% shares.