The Prax Group Signs An Agreement To Acquire TotalEnergies’ Upstream Assets In The West Of Shetland

By 27th June 2024Press Release

The Prax Group announces the signing of an agreement to acquire TotalEnergies’ interests in the Greater Laggan Area fields and the onshore Shetland Gas Plant, as well as its interests in several nearby exploration licenses. The transaction is subject to approval from the relevant authorities.

The Greater Laggan Area fields include Laggan, Tormore, Glenlivet, Edradour and Glendronach, located around 140 kilometres west of the Shetland Islands. Current production (for FY 2023) for TotalEnergies’ interests is at about 7,500 barrels of oil equivalent per day, made up of around 90% of gas.

Having acquired Hurricane Energy last year – a UK-based oil and gas exploration and production company with a 100 per cent operated interest in the Lancaster offshore oil field in the West of Shetland basin – this is a major acquisition transaction for the Prax Group, to further develop its E&P portfolio. This acquisition would see TotalEnergies’ interests become integrated within the Prax Group’s existing businesses, as part of the Group’s larger, long-term strategy.

Sanjeev Kumar Soosaipillai, Chairman and CEO of the Prax Group, commented: “With a strong track record of integrating acquisitions and managing assets in the oil and gas value chain, the Prax Group is a long-standing and trusted partner of TotalEnergies. The announcement of the signing of this agreement is the culmination of many months of solid co-operation between our respective companies.

Our strong balance sheet has enabled the Group to execute its growth strategy having successfully completed two major acquisitions last year, and with two other transactions in the pipeline, I am delighted that the Prax Group is able to announce its proposed expansion in West of Shetland, as part of our long-term plan to strengthen our position across the whole oil and gas value chain.

Following a period of consolidation, we now have a clear path to achieve our vision and future-proof our company and are ready to continue implementing our strategy. The acquisition of TotalEnergies’ West of Shetland interests is the beginning of the next exciting chapter in our history.”

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