Total has signed an agreement to sell 20% of its interests in the Laggan, Tormore, Edradour, and Glenlivet fields, located in the West of Shetland area, to SSE E&P UK Ltd. for £565 million ($876 million).
“The sale of these minority interests is aligned with Total’s portfolio management strategy and target of divesting $5 billion of assets in 2015,” said Arnaud Breuillac, president of exploration and production. “It allows us to capitalize fully on this new deep offshore development, while retaining a majority interest and operatorship. With the upcoming startup 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 UK.”
Following completion of the transaction, Total will hold a 60% operated interest in the Laggan, Tormore, Edradour, and Glenlivet fields, alongside partners DONG E&P (UK) Ltd. (20%) and SSE E&P UK Ltd. (20%). The sale also includes 20% of Total’s interest in the Shetland Gas Plant and interests in several exploration licenses located in the West of Shetland area, including the Tobermory discovery.