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Shell has recommenced production at its Penguins oil field in the North Sea following a four-year pause for infrastructure modernisation. The strategic facility, positioned 150 miles northeast of the Shetland islands, holds an estimated yield equivalent to 100 million barrels of oil spanning two decades.
Production rates are anticipated to reach peak levels of 45,000 barrels daily equivalent, marking a significant milestone for Shell’s North Sea operations. The field, initially discovered in 1974 and operational since 2003, previously relied on the now-decommissioned Brent Charlie platform for production.
The redevelopment programme has introduced a dedicated floating production, storage and offloading (FPSO) vessel, enabling direct oil transfer to export tankers. This cylindrical FPSO, specifically engineered for harsh North Sea conditions, operates at a water depth of 165 metres, demonstrating superior efficiency compared to traditional ship-shaped vessels.
Beyond oil production, the Penguins field contributes substantial gas output, sufficient to heat approximately 700,000 UK homes annually. The gas is channelled through existing pipeline infrastructure to St Fergus, Scotland, feeding directly into the national grid.
The venture represents Shell’s first operated facility in the North Sea for over two decades, with the company maintaining a 50-50 ownership structure alongside Neo Energy. Shell emphasises the FPSO’s environmental credentials, boasting 30 per cent lower operational emissions compared to its predecessor, Brent Charlie.
This development arrives as Shell combines its UK North Sea operations with Equinor, forming a joint venture poised to become the UK’s largest independent oil and gas enterprise. The timing proves crucial as Britain seeks to reduce reliance on energy imports while balancing domestic production with environmental commitments.
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