TotalEnergies weighs sale of UK North Sea gas assets

The Greater Laggan Area comprises the undeveloped Glendronach field as well as the Laggan, Tormore, Edradour and Glenlivet gas fields.

French oil and gas major TotalEnergies is considering selling its remaining stake in the UK’s North Sea natural gas fields, reported Bloomberg, citing sources.

The assets up for sale are located within the Greater Laggan Area (GLA).

Last year, TotalEnergies agreed to sell a 20% interest in the GLA gas fields to Kistos for an initial cash consideration of $125m (€117.5m).

The deal, which was signed in February 2022, also included contingent payments of up to $40m by Kistos.

The GLA comprises the undeveloped Glendronach field as well as the Laggan, Tormore, Edradour and Glenlivet fields.

It is located around 140km west of the Shetland Islands at water depths of 300–600m.

Citing a presentation by Kistos from 2022, the publication said that estimated production from the fields will be less than 25,000 barrels of oil equivalent per day this year.

TotalEnergies declined to comment on the development.

Its decision to sell assets would continue the trend of oil majors and private equity groups leaving the North Sea.

The divestitures have made space for a few other smaller energy companies such as Viaro Energy and Kistos to build a presence in the region, the publication said.

Last month, Shell finalised three bidders for the sale of its southern UK North Sea gas assets.

Viaro Energy, Ithaca Energy and Perenco made the final bids for the assets, which include the Leman Alpha hub, the Clipper field and the Bacton gas terminal.