TotalEnergies Sells Its Interests in Gas Fields in the UK
TotalEnergies is selling part of its gas assets in the UK.
The company’s press service reported this.
TotalEnergies has signed an agreement to sell its entire interest in the West of Shetland assets in the UK to The Prax Group. It includes the Laggan, Tormore, Glenlivet, Edradour and Glendronach fields, as well as the Shetland onshore gas plant and nearby exploration licenses. The transaction is subject to approval by the relevant authorities.
Currently, TotalEnergies produces about 7.5 thousand boe/day from these assets. Of these, about 90% is natural gas (400 million m3/year). The transaction involves the transfer of eligible employees from TotalEnergies to Prax in accordance with applicable law.
The transaction is in line with TotalEnergies’ strategy to continually adapt its portfolio through the sale of mature non-core assets. However, the company remains committed to the UK through both its North Sea exploration and production portfolio (Elgin-Franklin, Culzean and Alwyn fields) and its integrated energy and renewable energy portfolio.
The company previously signed an agreement with EIG Global Energy Partners to acquire 100% of West Burton Energy for £450 million ($575 million). West Burton Energy owns and operates the West Burton B combined cycle power station in Nottinghamshire, England. The acquisition is expected to strengthen TotalEnergies’ trading capabilities in the UK electricity and gas markets.
Recall that in 2022, TotalEnergies signed an agreement to sell to Kistos Energy Limited a 20% stake in the Greater Laggan and Shetland Gasworks fields in the UK, as well as stakes in several nearby exploration licenses.
The transaction price then included consideration in the amount of USD 125 million, as well as 2 conditional payments:
- 1st – up to USD 40 million depending on gas prices in 2022,
- 2nd – in case of development under an exploration license.
TotalEnergies in the UK
- present for more than 60 years;
- provides about 30% of natural gas production on the country’s continental shelf;
- in 2023, daily production was 142 thousand boepd;
- the company’s offshore wind portfolio is 5 GW, including the 1.1 GW Seagreen wind farm currently in operation and other major projects in development: West of Orkney (2 GW) and Outer Dowsing (1.5 GW);
- the company supplies gas and electricity to more than 300 thousand customers;
- TotalEnergies is also actively involved in the distribution of petroleum products: lubricants, aviation fuel bitumen, etc.;
- In addition, the company is expanding into carbon capture, utilization and storage (CCS) through its 10% stake in the Northern Endurance Partnership.
Prax Group
- independent international energy company;
- the company’s headquarters are located in London;
- 5th largest independent retailer of petroleum products in the UK under the Harvest Energy brand;
- other activities are exploration and production, refining, logistics and sales of crude oil and biofuels.
In 2000, the Company purchased the British Lindsey refinery and associated logistics assets from TotalEnergy.
In October 2023, the German Mabanaft GmbH & Co. KG has agreed to sell 100% of the shares of German OIL! Tankstellen GmbH of the British Prax Group.
Prax Group received a network of 340 gas stations and OIL service stations at the end of 2023! Tankstellen GmbH in Germany, Austria, Switzerland, Denmark.
