TotalEnergies sells 20% of Shetland gas plants to Kistos

French energy company TotalEnergies signed an agreement to sell a 20 percent stake in the Greater Laggan Area fields and in the Shetland Gas Plant in the UK to Kistos Energy Limited, the company said on Monday.

The agreement also includes interests in several nearby exploration licenses, it said.

Following the completion of the transaction, TotalEnergies E&P UK Limited will hold a 40 percent operated interest in the Laggan, Tormore, Glenlivet, Edradour and Glendronach fields, including infield facilities and the onshore Shetland Gas Plant, while partners Kistos Energy Limited, Ineos E&P UK Limited and RockRose UKCS15 Limited will hold 20 percent each.

TotalEnergies said the transaction price included a firm consideration of US $125 million, as well as two contingent payments, the first one up to $40 million depending on the gas price in 2022, and the second one in the event of development of a discovery on an exploration license.

The transaction remains subject to the approval of the UK authorities.

Development of the area was launched in 2010 and production start-up was achieved in 2016. Production from the 20 percent interest sold to Kistos Energy Limited was about 8,000 barrels of oil equivalent per day in 2021, TotalEnergies said.