TotalEnergies to sell West of Shetland gas assets to Prax Group

French energy company TotalEnergies has signed an agreement to sell its entire stake in the West of Shetland gas assets in the UK to The Prax Group, it announced on June 27.

The West of Shetland assets include the Laggan, Tormore, Glenlivet, Edradour, and Glendronach fields, the onshore Shetland gas plant, and nearby exploration licenses. The financial details of the transaction were not disclosed, and the sale is subject to approval from relevant authorities.

These mature assets currently produce about 7,500 barrels of oil equivalent/day in TotalEnergies’ share, consisting of around 90% gas. The transaction will also involve the transfer of relevant employees from TotalEnergies to Prax in compliance with applicable legislation.

“This transaction aligns with TotalEnergies’ strategy to continuously adapt its portfolio by divesting mature non-core assets,” said Jean-Luc Guiziou, senior vice president at TotalEnergies. “TotalEnergies remains committed to the UK through both its upstream portfolio in the North Sea (Elgin-Franklin, Culzean, and Alwyn fields) and its Integrated Power and Renewables portfolio.”

Earlier in June, TotalEnergies signed an agreement with EIG, an institutional investor in the energy sector, to acquire West Burton Energy, which owns the West Burton B gas-fired power plant in Nottinghamshire, for £450mn ($576mn).

Last week, the company agreed to sell its wholly-owned subsidiary, TotalEnergies EP (Brunei), to Hibiscus Petroleum, a Malaysian independent oil and gas exploration and production company, for $259mn.