France-based oil and gas corporation Total has acquired a 40% stake in two shale gas exploration licences in the UK.
The acquired interests, which are in petroleum exploration and development licences 139 and 140 in the Gainsborough Trough area of the East Midlands region, cover an area of about 240km².
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Total’s partners in the project will be GP Energy, a subsidiary of Dart Energy Europe with a 17.5% interest, Egdon Resources UK and Island Gas (IGas) with 14.5% each, and eCorp Oil & Gas UK with 13.5%.
With Total subsequently taking over operatorship as the project moves towards development, Igas will be the operator of the initial exploration programme.
Total Northern Europe senior vice president Patrice de Viviès said that the group is already involved in shale gas projects in the US, Argentina, China, Australia, Poland and Denmark, and will leverage its expertise in this new venture in the UK.
"This opportunity is an important milestone for Total E&P UK and opens a new chapter for the subsidiary in a promising onshore play," Viviès added.
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By GlobalDataTotal E&P UK’s current developments in the country include the West Franklin Phase II project and Laggan-Tormore project in the West of Shetland area.
Total is the operator of both projects, which are expected to start up in 2014.
The West Franklin project is expected to hold around 40,000 barrels of oil equivalent a day (boe/d), while the Laggan-Tormore project will have around 90,000 boe/d capacity.
Total had a production of around 105,000 boe/d in 2013. The company has been present in the UK since 1962.
Image: Total has acquired interest in the 139 and 140 licences in the Gainsborough Trough area of the UK. Photo: courtesy of Total.
