Shell UK Limited said on Wednesday it made a final investment decision (FID) to invest in the Arran gas and condensate field in the UK North Sea with partners Rockrose Energy and Dyas U.K.
Shell has also become the operator of the Arran project.
Arran is located 149 miles east of Aberdeen in the Central North Sea, close to the UK-Norway median line.
This is Shell’s fourth FID announcement in the UK North Sea in 2018, which will result in further production growth for the giant energy firm following the decision to redevelop the Penguins field in the northern North Sea, the Alligin field West of Shetland and the Fram field in the Central North Sea.
“As Shell marks 50 years of production in the UK North Sea, today’s announcement to invest in the Arran field and to assume operatorship is further proof of our continued commitment to the UK”, said Steve Phimister, vice president for upstream in the UK and Ireland.
“By working closely with partners to maximise the economic recovery of the North Sea, we’ve been able to transform and revitalise Shell’s UK Upstream business by focusing on competitive projects and operational excellence.
“Arran is an important addition to Shell’s portfolio as we seek to strategically grow our central North Sea production around the Shearwater hub.”
At peak production, Arran is expected to produce around 100 million standard cubic feet per day of gas and 4,000 barrels per day of condensate, which combined equates to 21,000 barrels of oil equivalent per day.
Four new development wells will be drilled and the natural gas and liquids they produce will be transported via a newly installed subsea pipeline to the Shearwater platform.