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February 1, 2022

TotalEnergies to sell stakes in UK West of Shetland fields

Kistos will buy a 20% stake in the Greater Laggan Area gas fields and associated infrastructure.

TotalEnergies has signed an agreement to sell minority stakes in several gas fields, located offshore the UK, to Kistos Energy for an initial cash consideration of $125m.

The company has signed a conditional asset purchase agreement, and a conditional share purchase agreement, to sell a 20% interest in the Greater Laggan Area (GLA) producing gas fields, and associated infrastructure, to Kistos.

The transaction also includes interests in other exploration licences, including a 25% stake in the Benriach prospect.

As part of the transaction, Kistos will make two further contingent payments in addition to the initial firm consideration.

TotalEnergies will receive the first payment of up to $40m, depending on the 2022 gas price. The second payment will be contingent on the development of a discovery on an exploration licence.

The transaction is conditional on the approval of the UK authorities, among other customary conditions. It is expected to close in in the second quarter of 2022

Located approximately 140km west of the Shetland Islands, at water depths of 300m to 600m, the Greater Laggan Area includes the Laggan, Tormore, Glenlivet, Edradour, and Glendronach fields.

Upon completion of the deal, TotalEnergies E&P UK will continue to hold a 40% operated stake in the fields, including infield facilities and the onshore Shetland gas plant.

Other partners will include Kistos Energy (20%), Ineos E&P UK (20%), and RockRose UKCS15 (20%).

In a press statement, TotalEnergies said: “Production from the 20% interest sold to Kistos Energy Limited was 8,000 barrels of oil equivalent per day in 2021.”

Kistos expects production from the assets under the deal to average approximately 6,000 barrels of oil equivalent per day (net) during 2022.

Last month, TotalEnergies and Japan’s Inpex agreed to sell their stakes in the company Angola Block 14 B.V. to Somoil.

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