Shell reaches Penguins FID

THE HAGUE, January 15, 2018 – Shell has taken a final investment decision on the redevelopment of the Penguins field offshore the UK, its first large project in the North Sea since 2012, the super-major announced on Monday.

Although no financial details were offered, analysts cited by Reuters estimated that the cost could reach USD 2.5 billion. The project will involve the construction of a new FPSO for the field.

“The redevelopment is an attractive opportunity with a competitive go-forward break-even price below USD 40 per barrel,” Shell said in a statement. “The FPSO is expected to have a peak production of circa 45,000 boepd.”

The Penguins field, discovered in 1974, was developed in 2002 by Shell, which owns a 50% operating interest, and ExxonMobil, which holds the remaining 50%.