UK-headquartered energy giant Shell has embarked on drilling operations at a high-impact gas prospect in the UK sector of the North Sea with a heavy-duty jack-up rig, owned by Valaris, an offshore drilling contractor.
Shell assumed operatorship of the P2437 license as part of the process of moving into the drilling phase, following a positive well investment decision for Selene in July 2022 and the approval from the North Sea Transition Authority (NSTA).
As the new operator, the firm approved the 2024 work program and budget and hired a jack-up rig from Valaris for a two-well drilling campaign, after the geotechnical site investigation works on the preferred surface location of the Selene exploration well were completed.
The Valaris 123 jack-up rig began its journey from the Central North Sea on July 21 toward the Selene well location in the Southern North Sea. Shell’s partner, Deltic Energy , has confirmed the start of drilling operations at the exploration well 48/8b-3. These drilling activities are anticipated to take approximately 90 days.
The Selene prospect, containing gross P50 prospective resources of 318 bcf – P90 to P10 range of 132 to 581 bcf – with a geological chance of success of 69%, is said to be one of the largest unapprised structures in the Leman Sandstone fairway of the Southern Gas Basin.
Shell is actively working on boosting its global oil, gas, and LNG portfolio, as illustrated by a final investment decision (FID) for a gas development project offshore Trinidad and Tobago, which is expected to increase its LNG arsenal.
The UK-based giant has set its cap on growing its LNG business by 20-30% by 2030, compared with 2022, with LNG liquefaction volumes planned to increase by 25-30%, relative to 2022. The LNG expansion is aligned with its ‘ LNG Ou tlook 2024,’ forecasting a rise in global demand for LNG of more than 50% by 2040.