AIM-listed Kistos, a joint venture partner in the Greater Laggan Area ('GLA') and co-owner of the Shetland Gas Plant, notes the North Sea Transition Authority (NSTA) decision to grant development and production consent for the Victory Gas Field, operated by Shell UK. This follows an environmental impact assessment by the Offshore Petroleum Regulator for Environment and Decommissioning ('OPRED').
The Victory Gas Field is situated approx. 29 miles northwest of the Shetland Islands and is estimated to contain a P50 recoverable resource of 179 billion cubic feet, equivalent to approx. 7 per cent of the UK's annual natural gas consumption. The gas produced from Victory will be developed as a single subsea tie-back well to GLA infrastructure and transported to the Shetland Gas Plant. The field is expected to reach first gas in the middle of the decade and will see peak production levels of circa 150 million cubic feet of gas per day.
Production from the Victory field will significantly increase throughput at the Shetland Gas Plant, further extending the life of the Greater Laggan Area whilst reducing overall unit operating expenditure.
Kistos is pleased to update shareholders on the end of 2023 calendar year with cash and near-cash of approximately €275 million (including estimated tax receivables).
Andrew Austin, Executive Chairman of Kistos, commented:
'We are delighted by the confidence of Shell in sanctioning this project and the support of the British government. As partners in the Shetland Gas Plant, we are encouraged that the future of the installation is further underpinned by more hydrocarbons being produced through this quality infrastructure. Kistos will benefit, along with the other partners, through more parties sharing the infrastructure and reducing opex while extending the life of the facility.
'As an active exploration, development, and production participant in the Greater Laggan Area, we look forward to working alongside our partners to support this important development for the UKCS and the West of Shetland region.'
Source: KIstos
