Deal reached to sell off share in gas plant

A deal has been signed to sell a major interest in the Shetland Gas Plant, as well as fields west of the isles.

TotalEnergies, the plant’s main operator, is selling a 20 per cent share of the plant and the Greater Laggan area fields to Kistos Energy Limited.

Interests in several nearby exploration licences are also included in the deal worth over $165 million.

The transaction is subject to the approval of the UK authorities.

The Greater Laggan Area comprises the Laggan, Tormore, Glenlivet, Edradour and Glendronach fields around 140 kilometres west of the isles, at water depths of 300 to 600 metres.

Production from the interest sold to Kistos was about 8,000 barrels of oil equivalent per day in 2021.

Chairman of development at Shetland Islands Council Alastair Cooper said: “It’s a good time to sell with the current high price of gas.

“But, more importantly, the capital injected will hopefully encourage further drilling to secure the longer term future of the plant.

“I suspect the reducing volumes without significant new finds makes the facility less attractive to TotalEnergies.”