Shell Invests in the Uk’s Pierce Field
Oct 03, 2019
London – Shell U.K. Ltd (Shell) and its partner Ithaca Energy (UK) Limited have taken a final investment decision on the Pierce Depressurisation Project in the UK Central North Sea.
The move will enable Shell to start exporting gas from the Pierce field. It builds on Shell’s significant presence in the North Sea and works to help maximise the economic recovery of oil and gas from beneath UK waters.
“This important development of the Pierce field will allow us to unlock additional gas reserves for the UK’s homes and businesses, and value for our shareholders,” said Steve Phimister, Vice President Upstream and Director of Shell U.K. Limited. “It is Shell’s eighth final investment decision in the UK Continental Shelf since the start of 2018. Each is part of a careful and cost-effective strategic expansion of our North Sea capacity, in line with our core upstream focus on profitable investments and competitive growth opportunities.”
The investment will go towards modifying the existing floating production, support and offloading (FPSO) vessel, the Haewene Brim, which is owned and operated by Bluewater. The work also includes installing a sub-sea gas export line from the FPSO to the SEGAL pipeline, and the drilling of new wells.
The Pierce development work has Oil & Gas Authority approval and will take place between 2020 and 2021. The Pierce field is then expected to produce more than 30,000 barrels of oil equivalent per day at peak production.
Pierce is a joint venture between Shell (Shell share 92.52%) and Ithaca Energy (UK) Limited (Ithaca share 7.48%).
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Notes to editors:
- Partner info: Enterprise Oil Limited (EOL) 42.79%, Shell EP Offshore Ventures Limited (SEPOV) 39.73%, Shell Upstream Overseas Services (I) Limited (SUOSL) 10%
- Joint venture partner: Ithaca Energy (UK) Limited (Ithaca) 7.48%
- The FPSO Haewene Brim is operated by Pierce Production Company Limited, a Bluewater company, and is producing oil from the Pierce field for its client Enterprise Oil Limited, in its capacity as the Pierce operator for and on behalf of the Pierce Owners. Enterprise Oil Limited is a subsidiary of Shell U.K. Limited.
- The Pierce field lies around 165 miles (265km) east of Aberdeen in Blocks 23/22a and 23/27 of the UK Continental Shelf sector of the North Sea.
- The breakeven price of the project is $20 per barrel of oil equivalent. The break-even price referenced is based on full life cycle economics inclusive of incremental costs associated with the depressurisation project since first capital spend.
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