French energy giant TotalEnergies has announced the sale of its entire interest in West of Shetland assets to The Prax Group, a private UK company.

The agreement, signed on June 27, 2024, includes the transfer of several mature gas fields, onshore facilities, and exploration licences.

The assets involved in the transaction comprise the Laggan, Tormore, Glenlivet, Edradour, and Glendronach fields, as well as the Shetland Gas Plant and nearby exploration licences.

These fields currently produce approximately 7,500 barrels of oil equivalent per day for TotalEnergies, with gas accounting for about 90 per cent of the output.

Jean-Luc Guiziou, Senior Vice President of Europe for Exploration & Production at TotalEnergies, explained the rationale behind the sale: “This transaction is in line with TotalEnergies’ strategy to continuously adapt its portfolio by divesting mature non-core assets.”

He also reassured stakeholders of the company’s ongoing commitment to the UK, stating: “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.”

As part of the agreement, relevant employees from TotalEnergies will be transferred to Prax in compliance with applicable legislation, ensuring a smooth transition of operations.

The Prax Group, which recently acquired Hurricane Energy Plc, continues to expand its presence in the UK energy sector with this latest acquisition.

This move aligns with the company’s strategic growth plans in the upstream oil and gas industry.

The transaction is subject to approval from the relevant authorities, and financial details of the deal have not been disclosed.

This divestment marks a significant shift in the ownership of key assets in the West of Shetland area, potentially impacting the UK’s domestic gas production landscape.

As the energy transition progresses, such transactions reflect the ongoing realignment of major oil and gas companies’ portfolios to focus on core assets and future growth areas.