Total Finds 1Tcf in UK Waters (Updates with OGA Remarks)
French major Total has found gas below its Edradour field in the West of Shetland, offshore UK, it said September 24. The well was drilled to a final depth of 4,312 metres and found a gas column of 42 metres of net pay in a high quality Lower Cretaceous reservoir. (This article was updated later Sept.24 with remarks from the UK upstream regulator and industry association below)
Preliminary tests confirm good reservoir quality, permeability and well production deliverability, with recoverable resources estimated at about 1 trillion ft³ (28bn m3), it said. Block 206/04a is in water depth of about 300 metres and the discovery can be developed quickly with the existing infrastructure around the Edradour field and the Laggan-Tormore facilities of the Shetland Gas Plant.
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“Glendronach is a significant discovery for Total which gives us access to additional gas resources in one of our core areas and validates our exploration strategy. Located on an emerging play of the prolific West of Shetland area, the discovery can be commercialised quickly and at low cost by leveraging the existing Laggan-Tormore infrastructure,” said Total's upstream boss Arnaud Breuillac.
Total operates Edradour/Glendronach with a 60% interest, while Ineos and UK utility SSE each have 20% interests. SSE wholesale director Martin Pibworth added: "Gas production assets are a natural complement to SSE's interests in gas-fired power generation and gas supply to business customers. They are expected to add to SSE's earnings from gas production in due course. In the meantime, we will continue to support exploration and appraisal activities around our existing assets."
UK upstream regulatory chief Andy Samuel said: “This discovery is clearly great news not just for Total and the Shetland gas plant, but as a gas discovery it’s great news for the UK’s security of supply. We know West of Shetland has significant exploration potential; some 1 trillion ft3 which is why we’re supporting industry’s West of Shetland Area Plan to progress exploration and development in the region." The Oil & Gas Authority will soon release its revised Yet-to-Find estimates for the prospective resources across the UK continental shelf [UKCS], he added: "These will highlight that the Atlantic Margin ranks highly in terms of hydrocarbon volume potential. We want to see more activity in the region and we recently made some of these areas available in the current 31st Offshore Licensing Round, closing 7 November 2018, and intend to make more acreage in the West of Shetland available for next year’s 32nd Offshore Licensing Round.”
Industry association Oil & Gas UK chief executive Deirdre Michie added: "The focus on quick commercialisation of this find, made viable by the UKCS’ existing infrastructure, provides motivation for investors as well as industry. As our Economic Report recently highlighted, an increase in drilling activity is key to unlocking the remaining potential of the UKCS. This significant discovery demonstrates that the improved competitiveness of the basin is having positive results. This is thanks to the hard work undertaken by industry since the downturn."