5 September, 2007

FRENCH oil giant Total yesterday (Tuesday) announced a major gas find west of Shetland.

The gas condensate discovery is in approximately 610 metres of water, 100 kilometres north west of Sullom Voe terminal.

Total has a 47.5 per cent interest in the field alongside Eni UK Ltd (22.5 per cent), DONG E&P (UK) Ltd (20 per cent) and Chevron North Sea Limited (10 per cent).

The Tormore discovery well was drilled to a total depth of 3936 metres and tested at 32 million cubic feet per day of gas with a condensate gas ratio of 75 barrels per million cubic foot.

This discovery lies 15 kilometres south west of the Total-operated Laggan discovery, which was successfully appraised in 2004.

"The reserves related to this discovery will be evaluated over the coming months and strengthen the gas potential of the area near the Lagan discovery in the West of Shetlands. This success illustrates Total's commitment to contribute to the development of United Kingdom's oil and gas resources", declared Yves-Louis Darricarrère, Total's president of exploration and production.

Recent discoveries lifted the group's proved and probable reserves in the UK to over 1 billion barrels of oil equivalent by the end of 2006.

The announcement came as the annual Offshore Europe conference got underway with the usual complaints from the oil majors about the UK tax regime deterring exploration.

This year had the added spice of the UK government rising to the SNP bait about Scotland having the right to its own oil, resurrected by Alex Salmond's rechristened Scottish Government.

The oil companies say the argument over tax is the major obstacle to an agreement about piping gas from the Laggan and other fields west of Shetland to Sullom Voe and beyond.