Total enters UK shale gas arena through recent purchase

Total SA has entered into the UK shale gas arena through the purchased of 40% interest in two shale gas exploration licenses in the UK, paying $1.6 million in back costs and the funding of a fully carried work program of up to $46.5 million.

Licenses 139 and 140 cover 240 sq km in the Gainsborough Trough area of the East Midlands region of the UK.

Total has the option to exit after an initial period of the program corresponding to a minimum commitment of $19.5 million.

The program includes the acquisition of 3D seismic; the drilling and testing of a vertical exploration well and associated well pad construction; and the drilling and flow-testing of a second appraisal horizontal well, which is conditional on the success of the testing of the exploration well.

Total’s partners in the project include GP Energy Ltd., a Dart Energy Europe subsidiary, with 17.5%, Egdon Resources UK Ltd. 14.5%, Island Gas Ltd. (IGas) 14.5%, and eCorp Oil & Gas UK Ltd. 13.5%.

John Francis Thrash, chief executive officer of eCorp International LLC, said, “From a North American shale E&P perspective, this very compelling prospect has many of the physical attributes of the best basins in the US. From a shale [mergers and acquisitions] perspective, the transaction, which represents about 1% of our UK-Europe holdings, is a quantum leap in value creation.”

IGas will be the operator of the initial exploration program, with Total taking over operatorship as the project moves toward development.

IGas said completion is expected to take place no later than June 30.

Total, which touts 105,000 boe/d in UK production in 2013, said it will become the UK’s largest oil and gas producer by 2015, with investments totaling $2 billion. The company has had a presence in the UK since 1962.

“[Total] is already involved in shale gas projects in the US, Argentina, China, Australia, and in Europe in Poland and in Denmark, and will leverage its expertise in this new venture in the UK,” said Patrice de Vivies, Total senior vice-president, northern Europe.

The company’s current UK projects, both slated for start-up this year, include West Franklin Phase II in which Total is operator at 40,000 boe/d capacity, and the Laggan-Tormore project in which Total is operator at 90,000 boe/d capacity, in the West of Shetland area.

More than 90% of Total’s production in the UK comes from several operated fields in the Alwyn zone in the northern North Sea and the Elgin-Franklin zone in the central Graben.

Total last year restarted production of gas and condensate on the Elgin-Franklin complex after it was shut off in 2012 because of a gas leak on the G4 well (OGJ Online, Mar. 11, 2013).

Related Articles

BLM starts process to consider new Nevada lease nominations

12/19/2014 The US Bureau of Land Management’s Battle Mountain, Nev., field office is seeking public comment on 197 parcels of public land, totaling 415,921 ac...

Mexico uses PSCs in first Round One step

12/19/2014 Mexico is offering production-sharing contracts to companies incorporated in the country for exploration of 14 shallow-water areas in Round One bid...

BASF, Gazprom cancel asset swap

12/19/2014

BASF and OAO Gazprom have agreed not to complete an asset swap that was scheduled for yearend.

AWE pulls out of Otway permit

12/19/2014 AWE Ltd., Sydbey, has decided to pull out of Perth-based junior WHL Energy Ltd.’s offshore Otway Basin permit Vic-P67 after a series of time extens...

Apache awarded Western Australia offshore permit

12/18/2014 A day after reporting its planned divestment of Western Australian and Canadian assets to Woodside Petroleum Ltd., Apache Corp. has been awarded a ...

Thirty-one House Democrats ask Jewell to bar leasing in Arctic Ocean

12/18/2014 US Rep. Jared Huffman (D-Calif.) and 30 other House Democrats urged US Interior Sec. Sally Jewell to reject the second supplemental environmental i...

Obama makes Alaska’s Bristol Bay off-limits for oil, gas activity

12/17/2014 US President Barack Obama placed Bristol Bay off-limits for future oil and gas leasing, extending a temporary withdrawal he imposed in 2010 that wa...

Cooper to buy 50% of offshore Gippsland Sole gas field

12/17/2014 Cooper Energy Ltd., Adelaide, has bought a 50% interest in the offshore Gippsland Sole dry gas field in retention lease Vic/RL3 as well as 50% of t...

Repsol to acquire Talisman in $13 billion deal

12/16/2014 Spain’s Repsol SA has agreed to acquire all shares of Talisman Energy Inc. of Calgary for $8.3 billion along with assumed debt of $4.7 billion. The...

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected