Fluor awarded EPC contract for Shell Penguins project in the North Sea

Shell to Redevelop Penguins Field in UK North Sea

Shell was the founder of the Brent oilfield in the region which lent its name to the benchmark oil price and celebrated its 40th anniversary since producing first oil from the field in late 2016.

"Having reshaped our portfolio over the last 12 months, we now plan to grow our North Sea production through our core production assets", Steve Phimister, a Shell vice President for Exploration and Production in the United Kingdom and Ireland, said, in a statement.

"It is another example of how we are unlocking development opportunities, with lower costs, in support of Shell's transformation into a world-class investment case".

Shell announced past year that it had completed the sale of a package of North Sea assets for up to £3bn to smaller rival Chrysaor.

Shell gave no details on the cost of the project, which Bernstein analysts last September said would be up to $2.5bn.

The Penguins cluster of fields now comprises four drill centers tied back to the Brent Charlie platform.

Shell had a dominant presence in the North Sea for more than 40 years. Eight new wells are to be drilled and tied back to the FPSO.

"We are expecting further high value projects to move forward to sanction this year which will help prolong United Kingdom production for many years", Andy Samuel, Chief Executive of the Oil and Gas Authority, said.

The field is jointly owned by Shell and ExxonMobil and is located 150 miles off the coast of the Shetland Islands.

Shell expects its floating platform will have a peak production capacity of roughly 45,000 barrels of oil-equivalent per day (BOE/d). "Having reshaped our portfolio over the last twelve months, we now plan to grow our North Sea production through our core production assets", said Steve Phimister, vice president for upstream in the United Kingdom and Ireland.

"In doing so, we will continue to work with the United Kingdom government, our partners and the regulator to maximise the economic recovery in one of Shell's heartlands".

According to Shell, a joint venture-owned/Shell-operated Sevan 400 FPSO has been selected as the development option for the field.

Late a year ago, Shell vended over half of its non-core North Sea properties to private equity firm Chrysaor Holdings Limited to advance its $30-billion divestment goals. Natural gas will be exported through the tie-in of existing subsea facilities and additional pipeline infrastructure.

Penguins, a joint venture between Shell and Exxon Mobil Corp., is already operational after first being developed in 2002.



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