French multinational Total has announced the launch the development of the Edradour gas field in the West of Shetland area together with its partner Dong Energy.
The development plan of the discovery, located in block 206/4a, 75 kilometers northwest of the Shetlands, consists of the conversion of the discovery well into a production well and a 16 kilometre production pipeline tied back to Total’s main Laggan-Tormore flowline.
The companies expect to launch production from the field in late 2017, at an estimated plateau of 17,000 barrels of oil equivalent per day (boed).
The development is estimated to cost £340million.
Simultaneously, Total has also acquired a 60% interest in the neighboring Glenlivet discovery.
The field is located in block 214/30a, 90 kilometers northwest of the Shetlands.
Together with its joint venture partners – Dong (20% interest), Faroe Petroleum (10%) and First Oil Expor (10%) – Total is looking to develop two wells and a 17 kilometre production pipeline tied back to the Edradour development.
The tie backs of Edradour and Glenlivet to Laggan-Tormore are expected to add reserves of more than 65 million barrels of oil equivalent.
“With the upcoming start up of Laggan-Tormore, the sanction of Edradour and the entry into Glenlivet, Total is establishing a new strategic hub in the West of Shetland area,” said Patrice de Vivies, Total’s senior vice president for exploration and production, Northern Europe.
“The sanction of Edradour also demonstrates our focus on cost discipline.
“The development was put on hold in 2013 due to significant cost increases following the tendering process, but subsequent negotiations with the contractors have reduced the costs to an acceptable level, allowing us to successfully launch the project.”