Shell sanctions North Sea gas project
Oil major Shell and its partner Ithaca Energy (UK) Limited have taken a final investment decision on the Pierce Depressurization Project in the UK Central North Sea.
The move will enable Shell to start exporting gas from the Pierce field, Shell said on Thursday.
“This important development of the Pierce field will allow us to unlock additional gas reserves for the UK’s homes and businesses, and value for our shareholders,” said Steve Phimister, Vice President Upstream and Director of Shell U.K. Limited.
“It is Shell’s eighth final investment decision in the UK Continental Shelf since the start of 2018. Each is part of a careful and cost-effective strategic expansion of our North Sea capacity, in line with our core upstream focus on profitable investments and competitive growth opportunities.”
Shell said that the investment would go towards modifying the existing floating production, support and offloading (FPSO) vessel, the Haewene Brim, which is owned and operated by Bluewater. The work also includes installing a subsea gas export line from the FPSO to the SEGAL pipeline, and the drilling of new wells.
The Pierce development work has Oil & Gas Authority approval and will take place between 2020 and 2021. The Pierce field is then expected to produce more than 30,000 barrels of oil equivalent per day at peak production.
Pierce is a joint venture between Shell (Shell share 92.52%) and Ithaca Energy (UK) Limited (Ithaca share 7.48%).
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