Kistos completes Greater Laggan acquisition
Kistos on July 11 revealed it had closed on the acquisition of a 20% stake from TotalEnergies in the Greater Laggan gas production cluster, situated in the UK North Sea west of the Shetland Islands.
The UK-listed independent gas producer expects the acquisition to increase its net output by around 6,000 barrels of oil equivalent/day this year, bringing its overall production to around 12,000 boe/d. Its 2P reserves are projected to rise by 6.2mn boe.
TotalEnergies now holds a 40% operated stake in Greater Laggan, followed by INEOS E&P (20%), SSE E&P (20%) and Kistos (20%).
The asset comprises four offshore gas fields – Laggan, Tormore, Edradour and Glenlivit – tied back to the Shetland Gas Plant via a long-distance 143-km flowline system.
In addition, Kistos will take over a 25% stake in the undeveloped Benriach prospect, estimated to contain 638 bn ft3/d of gas reserves, and a 20% share in the undeveloped Glendronach gas field.
Glendronach was discovered in 2018 and is expected to be developed via a single production well, utilising existing infrastructure in the Greater Laggan area. A final investment decision on the project is expected later this year.
Kistos's share of development costs at Glendronach is estimated to be around £20mn, subject to the super deduction that could be applied against the UK's windfall tax introduced in May. The super deduction was introduced to provide a near-term incentive for oil and gas investments that bolster UK energy security.