Royal Dutch Shell’s final investment decision (FID) on the redevelopment of the Penguins Field in the U.K. North Sea authorizes the construction of an FPSO unit, the company’s first in the northern North Sea in almost 30 years.
Redevelopment of the field, which became necessary because the Brent Charlie platform will cease production, will involve the eight additional wells drilled to be tied back to the new FPSO vessel. Additional pipeline infrastructure, along with existing subsea facilities, will be needed to move natural gas.
Penguins, which was discovered in 1974, is a 50:50 joint venture (JV) between Shell and ExxonMobil. It was first developed in 2002.
“Shell and Exxon taking FID on the Penguins redevelopment in early 2018 is very positive for the North Sea, marking the end of a cautious era during the downturn,” said Fiona Legate, Wood Mackenzie senior research analyst. “The Penguins redevelopment is expected to produce around 80 MMboe via a newbuild FPSO development. This is the largest FID since Culzean [gas field] in August 2015 and shows market confidence has returned. We are expecting up to 14 U.K. FIDs in 2018. Penguins is the second largest by reserves.”