Royal
Dutch Shell Plc. (Shell) made a final investment decision on the redevelopment
of the Penguins oil and gas field in the U.K. North Sea, the company announced
on Monday.
According
to Shell, the decision authorizes the construction of a floating production,
storage and offloading (FPSO) vessel -- the first newly manned installation for
the company in the northern North Sea in almost 30 years.
"The
redevelopment is an attractive opportunity with a competitive go-forward
break-even price below $40 per barrel. The FPSO is expected to have a peak
production (100 percent) of circa 45,000 barrels of oil equivalent per day,”
the statement read.
The
Penguins 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 FPSO
vessel. Natural gas will be exported through the tie-in of existing subsea
facilities and additional pipeline infrastructure.
The
Penguins field is in 165 meters of water, approximately 150 miles north east of
the Shetland Islands. The field was first developed in 2002 and is a joint
venture between owner and operator Shell with a 50 percent share and
ExxonMobil, the other 50 percent stakeholder.
(Anadolu Agency)