Oil and gas operator Total announced on Monday that it has started production from the Laggan and Tormore gas and condensate fields in 600 metres of water located in the UK’s West of Shetland area, about 77 miles to the north west of the Shetland Islands.
The Laggan-Tormore development is comprised of a 140 kilometre tie-back of four subsea wells to the new onshore Shetland Gas Plant which has a capacity of 500 million standard cubic feet per day. After being treated at the gas plant, the gas is exported to the mainland via the Shetland Island Regional Gas Export System (SIRGE) and the condensates are exported via the Sullom Voe Terminal. The fields are expected to produce 90,000 barrels of oil equivalent a day (boe/d) and will reportedly be capable of supplying energy to two million homes.
Arnaud Breuillac, President Exploration & Production, stated: “Laggan-Tormore is a key component of our production growth in 2016 and beyond. The innovative subsea-to-shore development concept, the first of its kind in the United Kingdom, has no offshore surface infrastructure and benefits from both improved safety performance and lower costs.”
He added: “By opening up this new production hub in the deep offshore waters of the West of Shetland, Total is also boosting the United Kingdom’s production capacity and Europe’s energy security.”
Laggan-Tormore is operated by Total E&P UK, with a 60% interest alongside partners DONG E&P (UK) Limited, which has a 20% interest, and SSE E&P UK Limited with an interest of 20%.
This project is part of a GBP3.5bn investment by Total, however it has been delayed over a year by challenging weather conditions and millions have reportedly been added to the cost of the development. The construction phase was estimated to have involved up to 800 jobs, with 70 full time posts in plant operation.
Total said it has had a presence in the UK for over 50 years and achieved equity production of 107,000 boe/d in 2015. The company expects operated production of 260,000 boe/d in 2016. Total’s UK operation includes several fields located offshore in three major zones: the Alwyn/Dunbar area in the Northern North Sea, the Elgin/Franklin area in the Central North Sea and the new Laggan-Tormore hub in the West of Shetland area.
Headquartered in Denmark, DONG Energy is said to be one of the leading energy groups in Northern Europe. It produces energy from offshore wind farms, bioenergy and thermal heat and power plants, oil and gas fields, as well as providing energy solutions to residential and business customers. The company employs about 6,700 people.
SSE produces, distributes and supplys electricity and gas, as well as other energy-related services across the UK and Ireland. The company reportedly operates and invests in a balanced range of energy businesses across the UK and Ireland.