Shell expects its Penguins FPSO to arrive in the UK North Sea in 2024 with start-up expected the same year, a spokesperson told Energy Voice.
Meanwhile, Shell’s (LON:SHEL) Jackdaw project is also moving closer to start-up with the jacket towed into the field during third quarter this year for installation.
Penguins field start-up moving closer
Located around 150 miles north-east of Shetland, Penguins is a redevelopment of a former tie-back field to the Brent Charlie hub.
The project will see a total of eight wells drilled and tied back to a newbuild floating production storage and offload vessel (FPSO).
The FPSO will be the oil giant’s first new manned vessel in UK waters in 30 years.
Following the release of Shell’s third quarter results, a spokesperson told Energy Voice the Penguins FPSO had encountered “unavoidable delays during the vessel’s construction in China due to COVID”.
The vessel is currently in Aibel’s yard in Haugesund after completing its maiden voyage from China earlier this year.
Shell originally expected first production from the Northern North See project in 2022, but delays have forced Shell to revise the timetable.
Despite not yet producing a single barrel of oil, earlier this year Greenpeace activists targeted the Penguins FPSO during its voyage to Norway.
Jackdaw project awaiting challenge outcome
In relation to the Jackdaw project, the Shell spokesperson said the company is still awaiting the outcome of a legal challenge to the OPRED regulator granting approval.
Located approximately 250 km east of Aberdeen, according to Shell the Jackdaw field has the potential to produce more than 6% of the UK’s gas production.
In July last year, Greenpeace lodged a legal challenge against the project the day after Shell took a final investment decision.
The challenge is currently on hold pending the outcome of the Finch case in the UK Supreme Court, which concerns similar legal issues.
In its annual report released earlier this year, Shell said “there is a relatively low risk of disruption” to the North Sea gas project.