Royal Dutch Shell pronounces a remaining funding resolution on the redevelopment of the Penguins oil and gasoline area within the UK North Sea.
The resolution authorises the development of a floating manufacturing, storage and offloading (FPSO) vessel, the primary new manned set up for Shell within the northern North Sea in virtually 30 years. The redevelopment is a pretty alternative with a aggressive go-forward break-even worth beneath $40 per barrel. The FPSO is anticipated to have a peak manufacturing (100%) of circa 45,000 barrels of oil equal p[er day.
“Penguins demonstrates the significance of Shell’s North Sea property to the corporate’s upstream portfolio,” mentioned Andy Brown, Upstream Director. “It is one other instance of how we’re unlocking growth alternatives, with decrease prices, in assist of Shell’s transformation right into a world class funding case.”
The Penguins area presently processes oil and gasoline utilizing 4 present drill centres tied again to the Brent Charlie platform. The redevelopment of the sphere, required when Brent Charlie ceases manufacturing will see a further eight wells drilled, which will probably be tied again to the brand new FPSO vessel. Natural gasoline will probably be exported by way of the tie-in of present subsea services and extra pipeline infrastructure.
Steve Phimister, Vice President for Upstream within the UK and Ireland mentioned: “Shell has had a powerful presence on this a part of the northern North Sea for greater than forty years. Having reshaped our portfolio during the last twelve months, we now plan to develop our North Sea manufacturing by way of our core manufacturing property. In doing so, we are going to proceed to work with the UK authorities, our companions and the regulator to maximise the financial restoration in one in every of Shell’s heartlands.”
The Penguins area is in 165 metres (541 ft) of water, roughly 150 miles north east of the Shetland Islands. Discovered in 1974, the sphere was first developed in 2002 and is a three way partnership between Shell (50% and operator) and ExxonMobil (50%).
A joint venture-owned/Shell-operated Sevan 400 FPSO has been chosen as the event possibility for the sphere. Oil will probably be transported through tanker to refineries and gasoline will probably be transported through the FLAGS pipeline to the St Fergus gasoline terminal in north-east Scotland. (Source: Shell)
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