Total will become the second largest producer in the UK North Sea, overtaking Shell as it ramps up major projects over the next two years, its UK boss said yesterday.
The French group’s UK upstream arm, Total Exploration and Production (E&P) UK, is looking to grow production to more than 200,000 barrels of oil equivalent (boe) per day in 2013 following three years of declines.
As a result, core staffing at Total E&P UK is expected to swell from 935 at the end of 2011 to more than 1,083 by the end of this year, the firm said.
However, UK managing director Phillipe Guys said changes in taxes on oil and gas production could damage the investment Total makes in the North Sea.
He added: “We are very proud to be in the position we are in but the industry needs to be heard.
“We need an acceptable economic environment.
“All the growth we have got might decline as quickly as it was built up if the (UK) Government does not build an acceptable environment for us.
“If at a group level investment is better made in Uganda than in the UK, we will not invest in the UK.”
Spending on new projects will increase this year to £1.2billion on top of operating costs of £500,000, which will rise to about £880,000 in 2013 as a result of the new projects.
Total’s work programme includes its Islay project, a tieback to the Alwyn North platform, due on stream early this year.
The Dunbar phase-IV project will see drilling start next year and Total’s West Franklin development at the Elgin-Franklin hub is due on stream in 2013.
Work on Total’s Laggan/Tormore development will ramp up after 2013, although drilling is due to start this year.
The workload will see Total’s active rig count in the UK North Sea more than treble in 2012, from two last year to seven.
Total’s target for 2013 production compares with daily output of 200,000boe in 2009, 180,000boe in 2010 and 160-170,000boe last year.
UK North Sea production this year is expected to be in line with the 2011 figure but the 2013 target would see Total leapfrog Shell, with BP remaining the UK’s largest producer.
Total E&P UK is also working on its Edradour discovery west of Shetland and is running seismic campaigns in the region and in the central Graben area.
It picked up some operated blocks in the 26th UK licensing round and Mr Guys said the firm would be participating in the 27th round.
The UK managing director added: “I believe there is more to be exploited around Alwyn and I feel there is more upside in Elgin-Franklin,”
“We are seeing a lot of exploration potential for us.”
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