Shell sanctions Fram field development (UK)

Shell has made a final investment decision (FID) for the Fram gas and condensate field in the UK North Sea. 

The oil major on Monday said the FID added momentum to Shell’s North Sea production growth, following the decision to redevelop the Penguins field in the northern North Sea.

At peak production, the Fram field is expected to produce around 41 million standard cubic feet a day of gas and 5,300 barrels per day of condensate, which combined equates to 12,400 barrels of oil equivalent per day.

Shell did not say how much it planned to spend on the development.

“Fram is a simplified and cost-effective project that will allow us to develop this field profitably,” said Andy Brown, Upstream Director. “Through our ongoing work with partners to maximize the economic recovery of the North Sea, we’ve been able to transform and revitalize Shell’s UK Upstream business by focusing on competitive projects and cost-effective operations.”

Two wells will be drilled and the natural gas liquids they produce will be transported via a new subsea pipeline to the existing Starling field and then on to the Shearwater platform through existing pipelines.

Steve Phimister, Vice President for Upstream in the UK and Ireland said: “Shell has been able to reduce development costs by effectively collaborating across the supply chain and this has enabled us to invest in new projects such as Penguins and Fram. With our strong record of operational excellence and project execution, we will look to invest in further projects as we work to grow our business in the North Sea.”

Shell-operated Fram is a joint venture between Shell U.K. Limited (32% equity share) and Esso Exploration and Production UK Limited (68% equity share).

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