DONG Energy has decided together with its partner TOTAL (Operator) to develop
the Laggan and Tormore gas fields in the West of Shetland region in Great
Britain. The partners' interests in the fields are DONG Energy with 20% and
TOTAL with 80%. The fields are situated some 140 km North-West of the Shetland
Islands in blocks 206/1a and 205/5a respectively.
DONG Energy's expected total investment in the Laggan and Tormore fields is
app. DKK 4.3 billion. The fields have estimated total recoverable gas reserves
of app. 28 billion standard cubic meters plus some condensate and an expected
peak production rate of app. 14 million standard cubic meters per day. First
gas from the fields is planned during 2014.
“We are very pleased to be part of the first major step in developing this
exciting region's gas reserves where the new infrastructure will help to unlock
the large gas potential in the greater West of Shetland area. Together with
DONG Energy's West of Shetland licence portfolio the Laggan and Tormore fields
are part of our strategy to secure long-term supplies of oil and gas to our
customers”, said Søren Gath Hansen, Executive Vice President in DONG Energy and
responsible for the company's oil and gas business.
“Since our entry in to the Shetland region in 2000 we have participated in a
majority of the discoveries and established a strong position in this high
potential development area”, states Søren Gath Hansen.
The Laggan and Tormore fields will be connected via a subsea pipeline to a
gas-processing plant at Sullom Voe on the Shetland Islands with further export
of the processed gas to the UK Frigg (FUKA) pipeline system in the North Sea
and then on to the St. Fergus gas terminal on the East Scottish Coast .
Commencing in 2000 with no UK presence, DONG Energy today holds interests in
nine discoveries and 24 licences, of which it is operator of seven.
DONG Energy's entry was made with the award of the Cambo exploration licence,
in which the first oil discovery was made in 2001. DONG Energy has participated
successfully in every bidding round since then. In 2004, DONG Energy purchased
ConocoPhillips' portfolio in the area, including the Laggan discovery. The
company entered Rosebank and Tormore through farm-ins before the two fields
were discovered. In 2009 DONG Energy as operator made an exciting find in the
Glenlivet licence close to the planned Laggan-Tormore infrastructure and
participated in the Tornado find with OMV as operator.
The content of this announcement does not alter the previously announced
expectations for DONG Energy's financial result for 2010 or the announced
expected level of investments.
For further information, contact:
+45 9955 9583
Morten Hultberg Buchgreitz
+45 9955 9750