Total Sees Expansion in West of Shetland

France-based Total sees room for expansion in the West of Shetland area, announcing it decided to launch the development of the Edradour gas field together with its partner Dong E&P (UK). It also acquired a 60% interest in the neighbouring Glenlivet discovery.

“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” Patrice de Vivies, Total’s Senior Vice President Exploration & Production Northern Europe, said in a note released on Thursday.  

According to the company, the tiebacks of Edradour and Glenlivet to Laggan-Tomorre are likely to add reserves of more than 65 million barrels of oil equivalent. 

“The sanction of Edradour also demonstrates our focus on cost discipline. The development was put on hold in 2013 due to significant cost increases following the tendering process, but subsequent negotiations with the contractors have reduced the costs to an acceptable level, allowing us to successfully launch the project,” de Vivies explained. 

Total made the Edruadour discovery in 2011. It operates the discovery with a 75% interest together with its partner Dong E&P (UK) Limited (25%). The two companies team up also in the Glenlivet discovery, where Total will hold 60% interest, Dong 20%, Faroe Petroleum (UK) and First Oil Expro 10% interest each. 

A few months ago, Chevron ditched its £6 billion Rosebank project west of Shetland in 2013, while Total warned of escalating costs, calling on peers to revise the most expensive projects.