French oil giant Total, together with its partner DONG, has announced its decision to develop the Edradour gas field in the west of the Shetland region after securing lower costs and buying a 60% stake in the neighbouring Glenlivet field. The decision forms part of Total’s plans to establish major presence in the area which is relatively under-explored.
Gas field development plans for the area were initially put on hold in 2013 due to significant cost increases following the tendering process. Sunsequent negotiations with contractors reduced costs to an acceptable level, thus enabling Total to successfully launch the project.
Other oil majors such as BP and Shell are also investing heavily in big developments off Shetland whilst there is relatively limited infrastructure in place, however this surge in interest is putting pressure on costs in the area and raising doubts about the viability of certain projects.
Head of Northern European Exploration and Production at Total, Patrice de Vivies, said: “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.”
This move by Total expects to add oil and gas reserves exceeding 65 million barrels of oil equivalent (boe) to its existing developments in the region.
Total discovered Edradour in January 2011. It will be tied into the Laggan-Tormore fields located approximately 20 miles away.
It is expected that Total will bring Edradour onstream in Q4 of 2017 with production peaking at 17,000 boe per day.