TotalEnergies has shut down its Gryphon floating production storage and offloading (FPSO) vessel.
The shutdown was in line with TotalEnergies previously filed decommissioning plan from 2023, which envisioned ceasing production from Gryphon on 31 December 2024, with decommissioning activities taking place starting in 2025.
The decision was opposed by Nobel Upstream, which owns stakes in two fields tied back to the vessel.
Nobel Upstream CEO Larry Bates said that the “hostile UK policy environment from both policymakers and regulators makes investment impossible.
“For years we have wanted to drill more wells in the Gryphon area but have been frustrated by the NSTA and Total in making that happen. Sadly, those wells will never be drilled as long as this draconian fiscal environment remains.
“Capital that would have been invested in the UK will now go overseas, along with the British workers who provide the hydrocarbons necessary to keep homes warm, lights on and factories producing.”
He added that the Gryphon shutdown means a loss of 2% of the UK’s domestic oil and gas supply and around £150 million in tax receipts by the end of 2027.
Nobel Upstream previously filed a lawsuit to stop plans to decommission the Gryphon FPSO, aiming to stop TotalEnergies from starting decommissioning work.
In its suit, Nobel said that decommissioning Gryphon would force the company to abandon two fields connected to the vessel, driving it to quit the UK North Sea.
The Gryphon FPSO is connected to five fields, including Gryphon North and South along with subsea tiebacks to the Maclure, Tullich and Ballindaloch fields.
Nobel Upstream holds a 7.6% stake in Maclure, with operator TotalEnergies holding 38.2%, Taqa 37% and Apache 17.2%. Nobel also holds 8% in Ballindalloch and TotalEnergies holds the 92% operating stake.
Gas is exported via a pipeline to Beryl A and through the Scottish Area Gas Evacuation (SAGE) system to St Fergus.
“The Gryphon area hub produces about 12,000 boe per day. How can that volume of production be uneconomic at $70 crude?,” Bates added.
“If Total is incapable of maintaining economic production given their high overhead costs and massive bureaucracy, Total must step aside and allow others to continue, as specifically required by existing law and regulations.”
Energy Voice contacted the NSTA and TotalEnergies for comment.
The Gryphon Alpha was the North Sea’s first purpose built permanently moored FPSO, based around 100 miles southeast of Shetland. It has been continuously operating for over 30 years since being installed in 1993.
French firm Total inherited the asset through its 2018 of takeover Maersk.
The French energy giant holds an 86.5% operating interest in the asset, alongside Sojitz Energy Development (13.5%).
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