Total fires-up Shetland gas plant
8 Feb 2016
French oil and gas firm Total has begun production from its Laggan and Tormore gas and condensate fields.
The fields, which sit in 600 metres of water in the West of Shetland, consist of four subsea wells that link to the newly-developed onshore Shetland Gas Plant.
“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, Total.
The innovative subsea-to-shore development concept...has no offshore surface infrastructure and benefits from both improved safety performance and lower costs
Total E&P president Arnaud Breuillac
According to Total, around 90,000 barrels of oil equivalent per day will be produced, which, once treated at the onshore plant, will be exported to the mainland via the Shetland Island Regional Gas Export System (SIRGE).
The condensates, meanwhile, will be exported via the Sullom Voe Terminal, Total said.
“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,” Breuillac added.
Total operates the £3.5 billion Laggan-Tormore development alongside Danish energy firm DONG Energy and electricity and gas supply company SSE.
Commenting on today's start-up of production, Oil & Gas UK chief executive Deirdre Michie 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."
Michie also welcomed the investment the project brought to the UK.
"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," she said.