Laggan-Tormore Gas Field Stakeholder Expects Delay To Start Date


LONDON, Aug 28 (Reuters) - Britain's Laggan-Tormore gas condensate fields in the North Sea are expected to start production next year, instead of at the end of this year, according to project stakeholder Dong Energy.

Total is developing the two fields off the Shetland Islands in Scotland at a cost of about 3.3 billion pounds ($5.5 billion). As part of the project, the company is constructing a gas processing plant and export pipeline.

Total E&P UK is the operator of the fields and has an 80 percent stake in the project, with Dong E&P UK holding a 20 percent stake.

In its interim results on Wednesday, Dong Energy said: "The operator of the Laggan-Tormore field is currently reviewing delays in the construction of the gas treatment plant in the Shetland Islands.

"It is DONG Energy's expectation that production start-up from the field will be postponed from the end of 2014 to 2015."

Total started the project in 2010 and a company spokesman said the aim remains to complete construction by the end of the year.

"Once it's at full production we anticipate (output of) 90,000 barrels of oil equivalent per day," he said.

Britain's oil and gas output has fallen by about two thirds since 2000 as production has declined from ageing infrastructure.

Hopes for a revival have been pinned on significant capital investment over the past few years by oil and gas majors in new projects off the Shetlands and in field life extensions.

Dong also said that its Herje oil and gas field in the Danish sector of the North Sea would not start production until 2017, instead of 2016, because of delays by its suppliers.

(1 US dollar = 0.6026 British pound)

(Reporting by Nina Chestney; Editing by Mark Potter and David Goodman)

Copyright 2016 Thomson Reuters. Click for Restrictions.


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