Royal Dutch Shell has made final investment decision on the redevelopment of the Penguins oil and gas field in the UK North Sea.

Located in 165m of water, approximately 150 miles north east of the Shetland Islands, the Penguins field is equally owned by Shell and ExxonMobil. The field was first developed in 2002.

The redevelopment plan includes construction of a floating production, storage and offloading (FPSO) vessel with a peak production capacity of approximately 45,000 barrels of oil equivalent per day (boe/d).

The plan includes the construction of a new-build Sevan Marine designed cylindrical FPSO. During the construction of the FPSO unit, Sevan Marine will also continue to offer engineering support. 

Shell said that the project will be its first new manned installation in the northern North Sea in almost 30 years.

The FPSO will be used to redevelop the Penguins field, which currently processes oil and gas using four existing drill centers which are tied back to the Brent Charlie platform.

Upon decommissioning of the Brent Charlie platform, an additional eight wells will be drilled and be tied back to the new FPSO vessel.

Shell UK and Ireland Upstream Vice-president Steve Phimister said: “Having reshaped our portfolio over the last twelve months, we now plan to grow our North Sea production through our core production assets.

“In doing so, we will continue to work with the UK government, our partners and the regulator to maximize the economic recovery in one of Shell’s heartlands.”

Oil produced from the field will be transported to refineries via tanker while the gas will be transported through the FLAGS pipeline to the St Fergus gas terminal in north-east Scotland.

Commenting on Shell’s decision, Oil & Gas UK chief executive Deirdre Michie said: “We are hopefully entering a more positive phase for our industry in the UK with new projects on the horizon that I hope will bring a much needed boost for companies in the supply chain.”

Image: The Penguins oil and gas field is locate in the UK North Sea. Photo: courtresy of Sevan Marine ASA.