(Alliance News) -Â TotalEnergies SE on Monday said it has agreed to sell minority interests in West of Shetland fields to Kistos PLC.
TotalEnergies is selling 20% working interests in the producing Laggan, Tormore, Edradour, and Glenlivet gas fields, located offshore the UK West of Shetland. The deal also includes a 20% interest in the undeveloped Glendronach gas field and a 25% interest in block 206/4a, which contains the 638 billion cubic foot Benriach prospect.
The transaction has a firm consideration of USD125 million as well as two contingent payments, the first one up to USD40 million and dependent on gas prices and the second one in the event Benriach is developed.
AIM-listed Kistos said it expects production from the assets to average around 6,000 barrels of oil equivalent per day net during 2022. It will finance the acquisition from internal resources. Back in late December, Kistos had confirmed it was participating in the assets sales process being run by TotalEnergies.
Completion is expected in the second quarter of 2022, and needs approval from UK authorities.
Following the sale, TotalEnergies E&P UK Ltd will hold a 40% operated interest in the Laggan, Tormore, Glenlivet, Edradour and Glendronach fields, including infield facilities and the onshore Shetland Gas Plant, alongside partners Kisto on 20%, Ineon E&P UK Ltd on 20% and RockRose UKCS15 on 20%.
"We are delighted to announce this transaction with TotalEnergies and look forward to working with them and the other partners in the Greater Laggan Area. The deal increases our gas production and complements Kistos' strategy in the Netherlands," said Kistos Executive Chair Andrew Austin.
Shares in Total were up 0.2% at EUR51.34 in Paris on Monday, while Kistos was down 3.2% at 400.00 pence in London.
By Lucy Heming;Â lucyheming@alliancenews.com
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Kistos Holdings (KIST)