TOTAL is reported to be trying to sell a 20 per cent stake in the giant Laggan Tormore gas development off Shetland following the plunge in the oil price.
The sale would allow the French oil and gas giant to raise funds and to reduce its exposure to the United Kingdom Continental Shelf, where companies face high operating costs. As the Laggan Tormore project has a £3.5billion development budget the stake may be valued at more than £500m. If confirmed, the sale plans would provide a fresh sign that oil and gas majors' enthusiasm for the UKCS is waning in response to the fall in the oil price since June. With an 80 per cent stake in Laggan Tormore, Total has been an enthusiastic champion of the plan to develop the fields as a major new production hub around 75 miles north west of Shetland. First gas is expected in coming months following a delay. It was expected at the end of last year. Production is expected to peak at more than 90,000 barrels oil equivalent daily. Denmark's Dong has a 20 per cent stake in Laggan Tormore. Total said it does not comment on market rumours. It described the Laggan Tormore development as a core asset.
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