Total’s aim to become the UK’s largest oil and gas producer was boosted yesterday after the French giant gave the green light to its delayed £340 million Edradour natural gas field.
The firm, along with its partner DONG Energy, had put the development west of Shetland on hold last year after concerns over rising costs.
However, it has now sanctioned the development and has also moved to acquire a majority 60% interest in the neighbouring Glenlivet discovery as it looks to establish a major new hub in the region.
Total which has had a presence in the UK since 1962 and has major interests in the Alwyn/Dunbar area in the Northern North Sea and the Elgin/Franklin field in the Central Graben region had total equity production of 105,000 barrels of oil equivalent per day last year.
Once operational the firm’s Laggan-Tormore project, which Edradour and Glenlivet production will eventually feed into, will increase that figure by 90,000boe/d at peak production.
Along with production from the West Franklin Phase II project, a 40,000 boe/d scheme at peak, Total said it was on track to become the UK’s largest oil and producer by next year.
Patrice de Vivies, Total’s senior vice-president exploration and production in northern Europe, said the go-ahead for Edradour was a major milestone for the company.
“With the upcoming start up of Laggan-Tormore, the sanction of Edradour and the entry into Glenlivet, Total is establishing a new strategic hub in the West of Shetland area,” Mr de Vivies said.
“The sanction of Edradour also demonstrates our focus on cost discipline,” he said.
“The development was put on hold in 2013 due to significant cost increases following the tendering process, but subsequent negotiations with the contractors have reduced the costs to an acceptable level, allowing us to successfully launch the project.”
As operator, Total has a 75% interest in Edradour, with DONG holding the remaining 25% stake.
The French firm has now acquired a 60% stake in the Glenlivet prospect, with DONG retaining a 20% interest and Faroe Petroleum (UK) and First Oil Expro each maintaining 10%.