Prax Group to acquire TotalEnergies’ West of Shetland upstream assets

The Prax Group has agreed to acquire TotalEnergies E&P UK Ltd.’s operated West of Shetland assets in the United Kingdom. A purchase price was not disclosed.

Included in the deal are the Greater Laggan Area fields (Laggan, Tormore, Glenlivet, Edradour, and Glendronach), which lie about 140 km west of the Shetland Islands, interests in certain nearby exploration licenses, and the onshore, 500 MMcfd Shetland Gas Plant. 

Discovered in 1986 and 2007 respectively, Laggan and Tormore fields are grouped together as a 600-m deep offshore gas project. Wells are tied back to the Shetland Gas plant on the north coast of the main island of the Shetland Isles via a 140 km pipeline network. Production began in February 2016.

In August 2017, Edradour and Glenlivet came on stream. The two fields lie 75 km and 90 km north west of the Shetland Isles, in water depths of 295 m and 435 m, respectively. The project consists of three wells tied back to the Laggan-Tormore production system.

Current production (for FY 2023) for TotalEnergies’ interests is about 7,500 boe/d (90% gas). In 2022, TotalEnergies farmed out interest in Greater Laggan Area to Kistos PLC, which now holds 20% of Laggan, Tormore, Edradour, and Glenlivet producing gas fields and the Shetland Gas Plant, and 20% of the Glendronach gas discovery (OGJ Online, Jan. 31, 2022). Viaro Energy bought in in 2021 (OGJ Online, Oct. 15, 2021). Ineos AG also holds interests (OGJ Online, May 24, 2017).

With the deal, which involves the transfer of relevant employees from TotalEnergies to Prax in compliance with applicable legislation, the Prax Group aims to further develop its exploration and production portfolio. The company acquired UK-based Hurricane Energy in 2023, which included 100% operated interest in Lancaster offshore oil field in the West of Shetland basin.

The transaction is subject to approval from the relevant authorities.