LA DEFENSE (dpa-AFX) - Total SA (TTA.L, TTFNF.PK, TOT) is reported to invest about $50 million in the UK for exploration of shale gas, making the French energy giant the first major oil and gas company to invest in shale gas in the UK.
Total will buy about 40 percent stake in licenses held by firms in Lincolnshire in the East Midlands, according to reports. The deal is expected to be reported on Monday.
This latest development comes at a time when the UK government is trying to promote the drilling of shale gas as the North Sea resources declines, although it faces fierce opposition from environmental groups due to the controversial process of extraction involved.
Shale gas is extracted through hydraulic fracturing, or fracking, which involves pumping a high-pressure mix of water, sand and chemicals into the ground.
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