Kistos acquired several working interests in the Greater Laggan Area (“GLA”), West of Shetlands in July 2022.
The GLA comprises four producing gas-condensate fields; Laggan, Tormore, Edradour and Glenlivet, as well as additional exploration licences which are listed in the table below. Kistos has a 20% non-operated working interest in the four producing fields, as well as the Shetland Gas Plant (“SGP”) and associated infrastructure (of which TotalEnergies E&P UK Ltd is the operator)
The SGP was purpose built to process hydrocarbons produced from the GLA fields, and was designed to process up to 500MMscf/d of wet gas and associated liquids. The Laggan field commenced production in February 2016, and currently consists of five wells. The Tormore field is ~125km north west of the Shetland Islands, and commenced production in 2016 from a single well. Edradour and Glenlivet came on stream in August 2017 as capacity became available on the SGP. These two fields produce from 1 and 2 wells.
|Licence||Field / Prospect||Status||Kistos WI%||Operator|
|P.1159 & P.1678||Tormore||Producing||20%||TotalEnergies|
|P.1453||Glendronach (Edradour Royal Sovereign)||Discovery||20%||TotalEnergies|
|P.1453 & P.2411||Benriach||Prospective||25%||TotalEnergies|
Table 1 – Licence information for the West of Shetlands assets that Kistos are a party to.
Cartoon/Illustration of the GLA subsea infrastructure towards the SGP
All four fields have been developed as subsea tiebacks to the SGP, producing through twin 18” production flowlines. After processing, condensate is transported via an 8” export line to the neighbouring Sullom Voe Terminal (SVT) whilst the gas is exported down the SIRGE pipeline (Shetland Island Regional Gas Export) and then onward through the FUKA system which lands gas at the UK mainland. NGL’s (Net Gaseous Liquids) are removed at St. Fergus and dry gas is sold into the grid.
The GLA partnership drilled and tested the Glendronach prospect in 2018 making a discovery in Royal Sovereign formation sands. The joint venture continues to mature plans to take the Glendronach development to a final investment decision, which, if achieved, would involve re-entering the suspended discovery well ‘GD-01’ to produce the Glendronach field as a single well development, tied back to the Edradour manifold and utilising the existing GLA export infrastructure.
The Benriach prospect, to be drilled in summer 2023, is targeting the same Royal Sovereign sands discovered in the Glendronach field. The operator carries a P50 estimate of 638bcf recoverable resource, which will be refined following drilling results. In the case of success, Benriach would extend the cessation of production plans on the SGP infrastructure whilst enhancing the UK government’s “MER” (Maximum economic recovery) strategy.
Several additional prospects, such as Roseisle and Cardhu, have also been identified within the licences listed above, and the various joint ventures are continuing to mature these opportunities.