BAKU, Azerbaijan, February 4. Shell has officially restarted production at the Penguins oil and gas field in the UK North Sea, utilizing a state-of-the-art floating production, storage, and offloading (FPSO) unit, Trend reports.
The field is being jointly operated by Shell (50%) and NEO Energy (50%). This marks a significant shift from the previous export route, which relied on the Brent Charlie platform, now decommissioned after ceasing production in 2021.
The new FPSO is expected to reach peak production of approximately 45,000 barrels of oil equivalent per day (boe/d), with an estimated 100 million barrels of recoverable resources. While the field is primarily focused on oil production, it will also supply enough gas to power approximately 700,000 homes in the UK annually.
In addition to enhancing production, the new FPSO brings a notable environmental benefit, reducing operational emissions by around 30% compared to the old Brent Charlie platform. This development will extend the field’s operational life by up to two decades, ensuring continued contribution to the UK's domestic energy supply.
Zoë Yujnovich, Shell’s Director of Integrated Gas and Upstream, highlighted the importance of the project: “The Penguins field is a crucial source of secure domestic energy, and the FPSO demonstrates our commitment to investing in competitive projects that deliver more value with lower emissions.”
Oil produced at Penguins will be exported via tanker to refineries, some of which supply the UK’s petrol and diesel, given the country’s limited refining capacity. Natural gas, on the other hand, will flow through an existing pipeline to the St Fergus gas terminal in Scotland, which feeds into the UK's national gas network.
The redevelopment of the Penguins field has included the drilling of new wells, connected to the upgraded FPSO. Located 150 miles northeast of the Shetland Islands in waters over 160 meters deep, the field was discovered in 1974 and previously operated between 2003 and 2021.