TotalEnergies divests West of Shetland assets to Prax Group

TotalEnergies has announced the sale of its comprehensive interests in the West of Shetland assets in the United Kingdom to The Prax Group, marking a significant shift in its UK operational focus.

The assets involved in the transaction include the Laggan, Tormore, Glenlivet, Edradour, and Glendronach fields, the onshore Shetland Gas Plant, and nearby exploration licenses. These mature assets are currently producing approximately 7,500 barrels of oil equivalent per day, of which about 90% is gas. The sale is pending approval from relevant authorities and includes the transition of associated TotalEnergies employees to The Prax Group, adhering to applicable legislation.

Jean-Luc Guiziou, Senior Vice President Europe for Exploration & Production at TotalEnergies, explained the rationale behind the divestment: “This transaction is in line with TotalEnergies’ strategy to continuously adapt its portfolio by divesting mature non-core assets.” He emphasized the company’s ongoing commitment to the UK, highlighting its operations in the North Sea (Elgin-Franklin, Culzean, and Alwyn fields) and its integrated power and renewables portfolio.

TotalEnergies has been a significant presence in the UK energy sector for over 60 years, employing more than 1,800 people across the energy value chain. As one of the leading oil and gas operators in the country, TotalEnergies manages approximately 30% of the UK Continental Shelf’s gas production. In 2023, the company’s share of average daily production was 142,000 barrels of oil equivalent per day.

In addition to its upstream oil and gas operations, TotalEnergies is expanding its integrated power strategy in the UK. This strategy encompasses renewable power production and flexible power generation capacities. The company’s renewable portfolio includes 1.1 GW of gross installed capacity from the Seagreen offshore wind farm and 4.5 GW under development. In 2024, this was further bolstered by the acquisition of gas-fired power plants with a total output of 1.3 GW.

TotalEnergies is also a major supplier of gas and electricity to UK businesses and the public sector, providing EV charging solutions and marketing a range of petroleum products. Furthermore, the company has ventured into the carbon capture and storage (CCS) business, holding a 10% interest in the Northern Endurance Partnership.

TotalEnergies’ decision to divest its West of Shetland assets reflects a strategic realignment towards more sustainable and innovative energy solutions within the UK. By focusing on integrated power, renewables, and new technologies like CCS, TotalEnergies is positioning itself at the forefront of the energy transition, aiming to meet the future energy needs of the UK while maintaining a strong presence in its traditional sectors.