The fields forming a part of the deal are Laggan, Tormore, Edradour and Glenlivet. SSE will also acquire Total E&P UK’s stakes in the Shetland gas plant, and other exploration licenses in the region, including the Tobermory discovery.
Located around 140km west of the Shetland Islands on Blocks 206/1a, 205/4b and 205/5a, the Laggan and Tormore gas fields are scheduled to commence production later this year.
The produced gas will be transferred to the onshore Shetland gas plant, which is planned to be commissioned soon.
Located 75km northwest of Shetland on Block 206/4a, Edradour and Glenlivet fields are planned to commence production in 2017 and 2018, respectively.
The sale is part of Total’s portfolio management strategy to divest assets worth $5bn this year.
Total exploration and production (E&P) president Arnaud Breuillac said: "The sale allows us to capitalize fully on this new deep offshore development, while retaining a majority interest and operatorship."
SSE said that the acquisition will allow it to maintain a balanced range of energy businesses, and supports diversity in capital expenditure.
The assets will help the company meet demand from its customers and gas-fired power stations for the next 15 years and beyond.
Upon completion of the transaction, Total will have 60% in the Laggan, Tormore, Edradour and Glenlivet fields, while its partners Dong E&P UK and SSE E&P UK will have 20% each.
Image: The acquired assets will help SSE serve its customers and gas-fired power stations for more than 15 years. Photo: courtesy of num_skyman / FreeDigitalPhotos.net.
