The Hague-based Shell has sanctioned the redevelopment of the Penguins oil and gas field in the UK’s Northern Sea.
The field currently processes oil and gas using four existing drill centers tied back to the Brent Charlie platform.
The redevelopment of the field required when Brent Charlie ceases production will see an additional eight wells drilled, which will be tied back to the new floating production, storage and offloading (FPSO) vessel.
Shell authorized the construction of the new FPSO, making it the first manned installation for the company in the Northern Sea in almost 30 years, the company said in a statement.
The FPSO is expected to have a peak production (100%) of circa 45,000 boe/day. A joint venture-owned and Shell-operated Sevan 400 FPSO has been selected as the development option for the field.
Oil will be transported via tanker to refineries and gas will be transported via the FLAGS pipeline to the St Fergus gas terminal in north-east Scotland.
The Penguins field is in 165 meters (541 feet) of water, approximately 150 miles northeast of the Shetland Islands. Discovered in 1974, the field was first developed in 2002 and is a joint venture between Shell (50 percent and operator) and ExxonMobil (50 percent).