Shell plc has introduced that its subsidiary, Shell U.Okay. Ltd, has accomplished the restart of operations on the Pierce subject within the UK Central North Sea.
The restart follows a “vital improve” to permit fuel to be produced on the subject after years of the asset solely producing oil, Shell highlighted in an announcement posted on its web site.
In accordance with the corporate, “substantial” modifications have been made to the Haewene Brim floating manufacturing, storage and offloading vessel (FPSO), which is used to supply hydrocarbons at Pierce. A brand new subsea fuel export line was additionally put in, connecting to the SEGAL pipeline system, which brings fuel ashore at St Fergus, north of Aberdeen, Shell famous.
To allow the improve, the FPSO stopped producing in October 2021, then spent six months in dry dock the place it was reworked right into a vessel that would additionally produce fuel, Shell outlined.
Peak manufacturing is predicted to achieve 30,000 barrels of oil equal per day, in line with Shell, which acknowledged that that is greater than twice the manufacturing previous to the redevelopment, “with extra fuel being produced than oil”. The fuel shall be despatched by means of newly put in subsea pipelines and the oil shall be transported by tanker, as earlier than, Shell mentioned within the assertion.
Pierce lies round 165 miles east of Aberdeen, Scotland, in water depths of round 262 ft. It was found in 1975 and oil has been produced on the web site since 1999, Shell highlighted.
The redevelopment of the Pierce subject is a part of Shell UK’s broader intent to take a position $24.85-$31.06 billion (GBP 20-25 billion) within the UK vitality system within the subsequent decade, topic to board approval and a secure funding local weather, Shell famous, including that Pierce venture is one among eight funding choices Shell UK took in 2018 and 2019 alone so as to maintain North Sea manufacturing.
Shell mentioned that the redevelopment of Pierce is according to the UK Authorities’s North Sea Transition Deal (NSTD) and Shell’s Powering Progress technique. The NSTD units out an bold plan for the way the UK’s offshore oil and fuel sector and the federal government will work collectively to ship the abilities, innovation and new infrastructure required to fulfill stretching greenhouse fuel emissions discount targets, a UK authorities coverage paper on the deal states. Shell’s Powering Progress units out the corporate’s technique to speed up the transition of its enterprise to net-zero emissions, Shell’s web site notes.
“The completion of this main venture is testomony to Shell’s long-standing dedication to the UK North Sea,” Shell Upstream Director Zoe Yujnovich mentioned in an organization assertion.
“We took this funding resolution in 2019, and it’s now growing domestically produced fuel proper on the time when this extra provide is critically essential for the UK’s vitality safety. It’s a supply of big satisfaction when initiatives like Pierce come to fruition,” Yujnovich added.
In an announcement posted on its web site, Shell’s companion on the Pierce asset, Ithaca Power, confirmed the completion of restart operations at Pierce.
“We’re delighted that operations have resumed on the Pierce subject, with the redevelopment venture highlighting Ithaca Power’s dedication to put money into the UK North Sea at a time the place further provide is important to the UK’s Power Safety Technique,” Alan Bruce, Ithaca Power’s Chief Government Officer, mentioned in an organization assertion.
Trade physique Offshore Energies UK (OEUK) advised Rigzone that it welcomed information that Shell restarted operations on the Pierce subject.
“This a serious funding by Shell and the redevelopment of this subject is nice information for the vitality business and the financial system as a complete, because it means the sector can produce fuel in addition to oil for the UK market,” OEUK’s Market Intelligence Supervisor Ross Dornan mentioned.
“This extra provide is essential to the UK’s vitality safety and reduces our reliance on imports as we transition to internet zero. We have to proceed to discover our personal waters for brand spanking new reserves of oil and fuel similtaneously we increase and develop low-carbon applied sciences, to make sure we safeguard the nation’s vitality wants immediately and sooner or later,” Dornan added.
Pierce is a three way partnership between Shell firms, which personal a 92.52 % operated curiosity, and Ithaca Power (UK) Restricted, which owns a 7.48 % stake.
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