French energy group Total and its joint venture partners have commenced production from the Laggan and Tormore gas and condensate fields located about 125km north-west of the Shetland Islands in the UK.
Located in water depth of 600m in the West of Shetland area, the fields are estimated to produce 90,000 barrels of oil equivalent a day (boe/d).
Total expects the Laggan-Tormore project, which is estimated to cost £2.5bn ($3.8bn), to be a key component for its production growth in 2016 and beyond.
Total Exploration & Production president Arnaud Breuillac said: "The innovative subsea-to-shore development concept, the first of its kind in the UK, has no offshore surface infrastructure and benefits from both improved safety performance and lower costs.
"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 Laggan-Tormore development project involves a 140km tie-back of four subsea wells to the new onshore Shetland gas plant, which has a processing capacity of 500 million standard cubic feet per day.
Gas from the treatment plant will be exported to the mainland through the Shetland Island Regional Gas Export System (SIRGE) while the condensates are exported through the Sullom Voe terminal.
Oil & Gas UK chief executive said: "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.
"Investment in Laggan -Tormore was made possible by the introduction of a tax allowance for deepwater gas developments several years ago.
"The significant economic contribution made by the project illustrates how changes to the tax regime can be a real enabler in maximising the economic benefit from our oil and gas reserves."
Total E&P UK operates the Laggan-Tormore development ptoject with 60% interest. Other project partners include Dong E&P (UK) and SSE E&P UK each with 20% stake.
The field is estimated to have reserves of more than one trillion cubic feet of gas and condensates.
Image: The Laggan and Tormore fields are estimated to produce 90,000 barrels of oil equivalent a day (boe/d). Photo: courtesy of num_skyman/ FreeDigitalPhotos.net.