Faroe Petroleum has sold its ten percent interest in the undeveloped West of Shetland Glenlivet gas field to Total E&P UK Limited.
The consideration for the sale of the Glenlivet interest is £10 million, with an effective date of 1 January 2014, of which a proportion is deferred until the submission of the field development plan and certain production targets being achieved.
This 2009 West of Shetland gas discovery is situated in the Faroe Shetland Basin in water depths of around 500 metres, approximately 35 kilometres north east of the Laggan gas field and 19 kilometres north of the Edradour gas discovery. Glenlivet is planned to be developed in conjunction with the Edradour field as part of the wider West of Shetlands Laggan and Tormore gas development, sanctioned in 2010 and operated by Total E&P UK Limited.
Total also operates the Edradour discovery and has recently acquired a 60% interest in Glenlivet and taken over operatorship from DONG E&P UK Limited.
Graham Stewart, Chief Executive of Faroe Petroleum, commented: “We are pleased to announce the sale of our Glenlivet interest to Total, which is in line with our stated strategy to monetise our exploration successes to the Company’s greatest economic benefit. Total’s West of Shetland gas development project to export gas from Laggan, Tormore, Edradour and Glenlivet is a highly capital intensive investment in infrastructure, and one of the most significant UK upstream investments in recent years. Faroe’s timely transaction will release significant capital for investment in Faroe’s high impact exploration and appraisal portfolio.”