Total shares slump after 7 MMcfd North Sea gas leak

PARIS -- Following a three-day gas and condensate leak at its Elgin platform, French supermajor Total  said it could take several months to bring the leak under control, raising industry speculation of a huge payout bill.

Total says early reports of a subsea gas leak were incorrect and the leak is emanating at the surface at an estimated rate of 200,000 Cmd, and a 6-mile long trail of condensate has been seen on the water around the rig.

The Elgin facilities account for around 3% of the UK’s domestic gas supply.

Total said the leak may continue for up to six months, as this is how long the company estimates it will takes to drill an emergency relief well to plug the leak.

Meanwhile, Total’s share price has taken a pummeling on the French bourse, falling 6% Wednesday and a further 2.18% Thursday, over uncertainties of the costs to cap the well.

Should Total have to shut the Elgin field to cap the well, Total would take a EUR 5.7 billion hit in net present value terms, according to ratings agency Fitch, citing third party analysts. In cash terms Total has a EUR 2.6 billion stake in Elgin, and may have to reimburse its partners for their losses should responsibility for the leak fall in the operator’s lap.