Total, Dong sanction Edradour field development
French Total, together with its Danish partner DONG, has decided to launch the development of the Edradour gas field in the West of Shetland area, and has in addition acquired a 60% interest in the neighboring Glenlivet discovery.
The tie backs of Edradour and Glenlivet to Laggan-Tormore are expected to add reserves of more than 65 million barrels of oil equivalent.
“With the upcoming start up of Laggan-Tormore, the sanction of Edradour and the entry into Glenlivet, Total is establishing a new strategic hub in the West of Shetland area” said Patrice de Vivies, Total’s Senior Vice President Exploration & Production, Northern Europe.
“The sanction of Edradour also demonstrates our focus on cost discipline. The development was put on hold in 2013 due to significant cost increases following the tendering process, but subsequent negotiations with the contractors have reduced the costs to an acceptable level, allowing us to successfully launch the project.”
Total operates the Edradour discovery with a 75% interest together with its partner DONG E&P (UK) Limited (25%). Following Total’s entry into Glenlivet with a 60% interest, DONG will retain a 20% interest along with Faroe Petroleum (UK) Limited and First Oil Expro Limited, each holding a 10% interest. Total (80%, operator) and DONG (20%) are also partners in the Laggan-Tormore development.
Edradour and Glenlivet fields
The Edradour discovery is located in Block 206/4a, in approximately 300 meters of water, 75 kilometers northwest of the Shetlands. The development plan consists of the conversion of the discovery well into a production well and a 16 kilometer production pipeline tied back to the main Laggan-Tormore flowline. Edradour is expected to start up in the fourth quarter of 2017 and will reach a plateau of 17,000 barrels of oil equivalent per day (boe/d) with an estimated development cost of 340 million GBP.
The Glenlivet discovery is located in Block 214/30a, in approximately 435 meters of water, 90 kilometers northwest of the Shetlands. Total and the Glenlivet partners are studying the possibility of developing the reservoir with two wells and a 17 kilometer production pipeline tied back to the Edradour development. A decision by the Glenlivet partners regarding the development of the field is expected shortly.