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Total announces major gas find offshore UK
Total has announced a major gas discovery on the Glendronach prospect, located West of Shetland, offshore the UK. The well was drilled to a final depth of 4,312 metres and recoverable resources are estimated at about 1tn cf. Reportedly the largest conventional discovery in the UK since Culzean in 2008, Glendronach could contribute as much as 10% of the UK's annual gas production in its early years, according to market analyst Wood Mackenzie.
Located on block 206/04a, in water depth of about 300 metres and in a formation below the Edradour reservoir, the discovery can be developed quickly with the existing infrastructure around the Edradour field and the Laggan-Tormore facilities and Shetland gas plant, reports Total.
The Glendronach discovery is operated by Total, with a 60% interest, partnered by Ineos (20%) and SSE E&P (20%).
Commenting on the discovery, Oil & Gas UK Chief Executive Deirdre Michie, said: ‘This is a major discovery by Total which demonstrates the exciting potential the West of Shetland frontier region holds. The focus on quick commercialisation of this find, made viable by the UKCS’ existing infrastructure, provides motivation for investors as well as industry.’
‘As our Oil & Gas UK Economic Report recently highlighted, an increase in drilling activity is key to unlocking the remaining potential of the UKCS. This significant discovery demonstrates that the improved competitiveness of the basin is having positive results. This is thanks to the hard work undertaken by industry since the downturn. It also highlights what can be achieved when companies maximise the potential yield from their existing blocks. This increased activity is critical as we look to maximise economic recovery from the UK Continental Shelf.’
In other news, Total is to acquire from Chevron all the share capital of Chevron Denmark, which holds a 12% interest in the Danish Underground Consortium (DUC), a 12% interest in licence 8/06 and a 7.5% interest in the Tyra West pipeline. The transaction remains subject to approval of partners and the relevant authorities.
The acquisition will increase Total’s operated share of DUC from 31.2% to 43.2%. The other partners of the consortium are Shell (36.8%) and Nordsofonden (20%, owned by the Danish State).
The DUC currently operates 15 fields, all located in the Central Graben sector of the North Sea. It accounts for nearly 90% of Danish oil and gas production, which, in 2017, averaged 182,000 boe/d. Start-up of the Tyra gas field after redevelopment, sanctioned by the DUC partners in December 2017, is planned in 2022. It will see production capacity at the field increase to 60,000 boe/d.
