Total might sell Laggan-Tormore stake

ENERGY giant Total has confirmed that it is considering selling a portion of its stake in the Laggan-Tormore project.

The French company, however, reiterated its intention to remain dedicated to the £3 billion development to unlock the west of Shetland gas fields.

Total’s senior vice-president for Europe and Central Asia Michael Borrell told reporters at an oil conference in Paris that the company is contemplating selling 20 per cent of their stake in Laggan-Tormore.

Borrell is quoted as saying: “The group is clear that it wants to reduce a little bit its exposure west of Shetlands and 80 percent is a big exposure, so we are considering a divestment of 20 per cent.

“But it’s an excellent asset…and we will remain in it.”

Danish oil company Dong holds the remaining 20 per cent share in the scheme.

The Laggan-Tormore project is based 125km north-west of Shetland. The Laggan field was discovered in 1986 whilst the nearby Tormore was later found in 2007.

The project is heralded as representing the “the future of the UK oil and gas industry” and includes the new gas plant near Sullom Voe, subsea production system and 200 miles of pipeline to Shetland and St Fergus, near Peterhead.

The news comes after Petrofac – which is building Total’s gas plant – announced on Monday that it would make a further £130 million loss on the Laggan-Tormore project. This is an addition to the £160 million loss they confirmed in February.

Petrofac insists the gas plant, which is over 15 months behind schedule, will be completed in the third quarter of 2015.

Commenting on the Petrofac losses – which saw its share price tumble by 12 per cent on Monday morning – a Total spokesman said: “Total continues to work with its main contractor Petrofac on the completion of the Laggan-Tormore project.

“We are confident that the new timelines will be kept to and that the project will be complete by summer 2015.”