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October 6, 2021

TotalEnergies looks to sell stake in UK North Sea gas field for $300m

The Laggan Tormore field is capable of producing up to 90,000 barrels of oil equivalent per day.

By Archana Rani

France’s TotalEnergies is reportedly considering divesting a third of its 60% stake in the Laggan Tormore gas field in the UK North Sea.

A potential sale could fetch the firm around $300m, reported Reuters citing six industry and banking sources.

According to the sources, the French oil and gas firm expects the sale to draw interest from a buyer in the wake of surging gas prices in recent days that hit record highs due to reduced supplies.

In 2018, the firm attempted to sell a 20% stake in the Laggan Tormore field to Albion Energy and First Alpha Energy Capital.

However, the sale, which also included a number of smaller North Sea oil and gas fields, fell through.

Located around 125km north-west of the Shetland Islands, the Laggan Tormore field commenced production in 2016.

Ineos owns a 20% stake in the field, which is capable of producing up to 90,000 barrels of oil equivalent per day. The remaining 20% interest is held by Viaro Energy.

In an effort to reduce greenhouse gas emissions in the coming decades, TotalEnergies is looking to shift towards renewables and low-carbon energy.

The firm, however, is investing in natural gas projects.

Earlier this year, the Iraq Government approved the development TotalEnergies’ Ratawi natural gas project to boost gas production.

The Ratawi field, which has been producing 60,000 barrels per day (bpd), aims to increase production to 200,000bpd.

According to Iraqi News Agency, TotalEnergies also secured Iraqi cabinet approval for three more projects.

The approval comes as Iraq seeks to boost domestic gas production to reduce its reliance on Iran.

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