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France's Total begins producing natural gas from North Sea fields

File photo shows Elgin platform operated by the French energy giant, Total, 149 miles (240 kilometers) east of Aberdeen, Scotland.

French energy giant, Total, says it has started producing natural gas from Laggan and Tormore gas fields near the Shetland Islands in the North Sea.

The company released a statement on Monday saying that the fields, which are located more than 70 miles (about 113 kilometers) off the coast of Shetland, are expected to produce 90,000 barrels of oil equivalent per day (boe/d), AFP reported.

Total added that the project is a main part of its portfolio and is the first time that natural gas will be recovered from the edge of the UK continental shelf, where the depth of water descends rapidly from an average of 400 feet (122 meters) to 2,000 feet (610 meters).

The company has also described the site as a "key component" in its plans to boost gas production in British waters to 260,000 boe/d this year, as compared to 107,000 boe/d in 2015.

"By opening up this new production hub in the deep offshore waters of the West of Shetland, Total is also boosting the United Kingdom's production capacity and Europe's energy security," the statement added.

According to government estimates, as much as 17 percent of the UK’s declining oil and gas reserves are located in these deeper West of Shetland waters. Oil reserves at the Laggan field were first discovered in 1986, while those at the Tormore field were discovered in 2007.

Total says the projects can define the future of the UK oil and gas industry, because more accessible reserves used so far are diminishing, and the two fields represent a strategic investment, which will open up the West of Shetland for future development.

Total is Laggan-Tormore's operator, owning 60 percent in the installations there, with Denmark's Dong Energy and Britain's Scottish and Southern Energy holding 20 percent each.

Head of the company’s exploration and production department, Arnaud Breuillac, said: “By opening up this new production hub in the deep offshore waters of the West of Shetland, Total is also boosting the United Kingdom’s production capacity and Europe’s energy security.”

The groundbreaking natural gas production project has been also welcomed by industry group, Oil and Gas UK (OGUK), which has described it as a positive development for the beleaguered sector that is currently struggling in the face of plummeting oil prices.

“Developing the field attracted billions of pounds of investment to the UK, employed thousands of people and required technological innovation over many years. Production from the field will supply a significant proportion of the UK’s gas needs, supporting energy security at a time of sustained dependence on gas as a fuel,” said OGUK’s chief executive, Deirdre Michie.


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