TotalEnergies SE signed a deal to promote all its pure fuel stakes within the West of Shetland Basin in the UK to the Prax Group, the 2 firms introduced Thursday.
The divestment to the downstream-focused oil conglomerate consists of TotalEnergies’ 40 % operated curiosity within the 5 Higher Laggan Space fields within the North Sea and the onshore Shetland Gasoline Plant, in addition to close by licenses.
Final yr the French vitality large derived 7,500 barrels of oil equal per day, 90 % of which had been fuel, in share from the manufacturing fields — Laggan, Tormore, Glenlivet and Edradour. These subsea developments provide the Shetland Gasoline Plant, which has a capability of 500 million normal cubic ft a day.
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Within the undeveloped Glendronach subject, TotalEnergies made a discovery September 2018 that the corporate, then known as Whole, estimated to carry one trillion cubic ft of recoverable sources.
“This transaction is consistent with TotalEnergies’ technique to repeatedly adapt its portfolio by divesting mature non-core belongings”, Jean-Luc Guiziou, TotalEnergies senior vp for exploration and manufacturing in Europe, stated in a press release.
TotalEnergies E&P UK Ltd. holds a 40 % operated stake within the Higher Laggan Space fields and amenities, down from 60 % after an earlier divestment to Kistos Power Ltd. in 2022. Ineos E&P UK Ltd. and RockRose UKCS15 Ltd. additionally maintain 20 % every.
The transaction, whose worth was not disclosed, would additionally switch “related workers” of TotalEnergies to London-based Prax Group, the TotalEnergies assertion stated.
“TotalEnergies stays dedicated to the UK via each its upstream portfolio within the North Sea (Elgin-Franklin, Culzean and Alwyn fields) and its Built-in Energy and Renewables portfolio”, Guiziou added.
Final yr TotalEnergies’ hydrocarbon belongings within the UK produced a every day common of 142,000 barrels web. It operates about 30 % of the nation’s continental shelf fuel manufacturing, in response to the corporate.
Within the UK electrical energy sector, TotalEnergies has 1.1 gigawatts (GW) of gross put in capability plus 4.5 GW underneath growth, in response to the corporate. On June 5 it introduced an settlement to amass the 1.3 GW West Burton B gas-fired energy plant in Nottinghamshire, England, for GBP 450 million ($568.8 million).
Additionally it is a ten % proprietor within the Northern Endurance Partnership, a carbon seize and storage community challenge.
For Prax, the transaction marks its second acquisition within the upstream oil and fuel sector following its takeover of one other West of Shetland participant, Hurricane Power PLC, final yr.
“… with two different transactions within the pipeline, I’m delighted that the Prax Group is ready to announce its proposed enlargement in West of Shetland, as a part of our long-term plan to strengthen our place throughout the entire oil and fuel worth chain”, Prax Group chair and chief govt Sanjeev Kumar Soosaipillai stated in a separate assertion.
“Following a interval of consolidation, we now have a transparent path to realize our imaginative and prescient and future-proof our firm and are able to proceed implementing our technique”.
To contact the creator, electronic mail jov.onsat@rigzone.com
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