French oil and gas company Total has started-up production from the Laggan and Tormore gas and condensate fields, located in 600 meters of water in the West of Shetland area.
According to Total, the fields will produce 90,000 barrels of oil equivalent per day (boe/d).
“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,” said Arnaud Breuillac, President Exploration & Production.
“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.”
The Laggan-Tormore development consists of a 140 kilometer 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. Following treatment 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.
Total E&P UK operates Laggan-Tormore with a 60% interest alongside partners DONG E&P (UK) Limited (20%) and SSE E&P UK Limited (20%).
‘Very welcome news’
Deirdre Michie, chief executive of Oil & Gas UK’, a trade body promoting UK oil and gas sector said:
“The confirmation of first gas production from the Laggan-Tormore field is very welcome news at a challenging time for the UK oil and gas industry as a whole.
“Developing the field attracted billions of pounds of investment to the UK, employed thousands of people and required technological innovation over many years. Production from the field will supply a significant proportion of the UK’s gas needs, supporting energy security at a time of sustained dependence on gas as a fuel.
“Investment in Laggan –Tormore was made possible by the introduction of a tax allowance for deepwater gas developments several years ago. The significant economic contribution made by the project illustrates how changes to the tax regime can be a real enabler in maximising the economic benefit from our oil and gas reserves.”