TotalEnergies West of Shetland Offshore Assets Remain with TotalEnergies Amid Prax Group Liquidation Proceedings

Last year, TotalEnergies entered into an agreement to sell its West of Shetland offshore assets to Prax Group. However, as of today, the transaction has not yet been completed, and the assets remain under the ownership of TotalEnergies. This means that the assets will not be affected by any disposals resulting from the liquidation proceedings currently affecting Prax Group.

In a statement released by TotalEnergies EP UK, the company confirmed that it is still the operator of the Shetland Gas Plant and related fields. The deal with Prax Group includes a portfolio of mature offshore fields producing approximately 7,500 barrels of oil equivalent per day, as well as exploration licenses and a gas plant. The agreement also involves the transfer of employees to Prax Group.

While Prax Group’s parent company, State Oil, and its Lindsey refinery in Britain have entered liquidation proceedings this week, the upstream business and retail operations in Britain and Europe, including the assets intended to be acquired from TotalEnergies, remain outside of insolvency.

Despite the ongoing liquidation proceedings, the North Sea Transition Authority (NSTA), the British oil and gas regulator, has refrained from commenting on whether the sale of TotalEnergies assets to Prax Group could proceed. The NSTA’s rules on the change of ownership of oil and gas assets emphasize the importance of assessing the financial and technical capability of potential buyers when considering transactions for approval.

As the situation continues to unfold, both TotalEnergies and Prax Group are navigating the complexities surrounding the pending transaction. The outcome of the liquidation proceedings and the regulatory considerations will play a crucial role in determining the future of the agreement between the two companies.

For now, TotalEnergies remains committed to its operations in the West of Shetland region and will continue to oversee the Shetland Gas Plant and associated fields until the transaction with Prax Group is finalized.

Stay tuned for further updates as the situation develops.

(Source: Reuters)