DONG Energy has agreed to divest 5% of the UK Edradour field to Total E&P UK Limited.
The divestment, when completed, will result in an aligned DONG Energy participation of 20% in the four UK West of Shetland fields, Laggan, Tormore, Edradour and Glenlivet. Total is the sole co-owner (80%) and operator of the fields.
DONG Energy and Total have decided on a joint development of the Edradour and Glenlivet fields, by way of tie-in to the Laggan and Tormore infrastructure, with both fields expected to contribute to production in 2018.
Mike Smith, Managing Director for DONG Energy’s oil and gas activities in the UK said: “This is a great step forward for our business in the West of Shetlands. The agreement to move forward with the joint development of Edradour and Glenlivet underpins our long term gas hub strategy and strengthens our production base in the region.”
The field is located 90 km north-west of the Shetland Islands at a water depth of 435 meters. A gas discovery was made in September 2009. The reservoir will be developed with two wells using a single four-slot manifold on the seabed and a 35 km production pipeline tied back to the Laggan-Tormore pipelines.
The field is located 75 km north-west of the Shetlands at a water depth of 300 meters. A gas discovery was made in December 2010. A single well will be produced using a single four-slot manifold on the seabed and a 16 km production pipeline will then tie it back to the main Laggan-Tormore pipelines.