As part of the 33rd offshore licensing round, two joint venture (JV) partners, France’s energy giant TotalEnergies and London-listed Kistos, have been presented with seven new blocks or part blocks in an area that contains producing oil and gas assets located West of Shetlands off the coast of the UK.
The seven new additions that have been offered to the JV partners are situated in the Greater Laggan Area (GLA) and entail blocks or part blocks 206/2a, 214/27, 214/28a, 214/29a, 214/22a, 214/23a, and 214/24a. The work program to be undertaken encompasses studies on a seismic dataset owned by the JV.
Upon completion of the licensing round, Kistos will have a 33.3% working interest in all these assets, with TotalEnergies holding a 66.7% stake and assuming operator status. The blocks were applied for during the UK’s 33rd offshore licensing round , with submissions made in January 2023.
The licensing round kicked off on October 7, 2022 , putting forward acreage across the North Sea, including four priority areas with known hydrocarbons . The first batch of 27 awards was handed out in October 2023 , the second batch of 24 licenses came in February 2024 , and the third tranche, which consisted of 31 new license offers, was made in May 2024.
Before Kistos acquired a 20% non-operated stake from TotalEnergies in 2022, these seven blocks were previously held by the GLA JV, which covers the Greater Laggan Area assets where oil and gas is already being produced from the Laggan , Tormore , Glenlivet , and Edradour fields.
“The award of these blocks, which include the previously identified Ballechin exploration prospect, supports the JV partners’ efforts to identify opportunities to extend the life of existing infrastructure and maximise economic output,” underlined Kistos.
The offer of these seven blocks comes less than two months after TotalEnergies disclosed its intention to sell the GLA gas fields and associated infrastructure to optimize its portfolio and direct its attention to its core business.
As a result, Britain’s Prax Group decided to boost its acreage on the UK Continental Shelf (UKCS) by acquiring these West of Shetland gas fields and assets. Located up to 125 km northwest of the Shetland Islands, the producing fields lie in water depths of around 300 to 625 meters.
Recently, TotalEnergies, alongside Chevron as the operator, hit a new milestone in the Gulf of Mexico with 20,000 psi (20K) technology by bringing oil and natural gas from one of the industry’s first ultra-high pressure projects to the market.