France’s Total sold its minority interest in four UK fields in the West of Shetland area to SSE E&P UK Limited Wednesday for about $876 million.
SSE E&P will acquire a 20 percent interest in the Laggan, Tormore, Edradour and Glenlivet fields, Total said.
The sale also includes 20 percent 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.
The Laggan and Tormore fields are located about 87 miles west of the Shetland Islands on Blocks 206/1a, 205/4b and 205/5a, in 1,968 feet of water.
Development of the fields was launched in 2010 and first gas is expected in the coming months.
The development concept consists of a 86 mile tie-back of five subsea wells to the new onshore Shetland Gas Plant, with a peak production rate of 500 million standard cubic feet per day.
Development of the Edradour and Glenlivet fields was launched in 2014
The Edradour discovery is located 46 miles northwest of Shetland on Block 206/4a, in 984 feet of water.
The Glenlivet discovery is located north of Edradour on Block 214/30a, in 1,312 feet of water.
Edradour will be developed by converting the discovery well into a production well that will be connected to the main Laggan-Tormore flowline by a 10 mile subsea tie-back.
Glenlivet will be developed with two wells and a 10 mile long production pipeline tied back to Edradour.
Edradour is expected to start up in 2017, followed by Glenlivet in 2018.
Following completion of the transaction, Total will hold a 60 percent operated interest in the Laggan, Tormore, Edradour and Glenlivet fields, alongside partners DONG E&P (UK) Limited with a 20 percent interest and SSE E&P UK Limited with a 20 percent interest.
The deal is still subject to customary approvals.
“The sale of these minority interests is aligned with Total’s portfolio management strategy and target of divesting $5 billion of assets in 2015. It allows us to capitalize fully on this new deep offshore development, while retaining a majority interest and operatorship,” Total president for exploration and production Arnaud Breuillac said.