The North Sea could be an investment target for oil giant Shell once again, just months after agreeing to sell around $3.8billion worth of assets in the region.
Chief executive Ben van Beurden said a number of final investment decisions are due to be made in the next 18 months.
And among the eight upstream projects is Shell’s Penguins developments in the northern North Sea comprising of several oil and gas fields in the northern end of the East Shetland Basin.
Although discovered in the 1970s, the cluster field has never been fully developed due to variety of factors including poor reservoir performance, lack of subsea technology, tricky geology involving faults and the large area involved.
But speaking to investors following Shell’s Q2 results yesterday Mr van Beurden said it had made the possible shortlist for sanction.
The Penguins started production in 2003 via a subsea tieback to the Brent Charlie.
However at the time the wells were not made for future intervention work.
So with Brent Charlie due to shut down next year, a possible redevelopment plan was unveiled involving an FPSO and new intervention capable wells.