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Shell OKs first UK North Sea project in six years

Staff Writer |
Royal Dutch Shell gave the green light on Monday for an expansion of the Penguins oil and gas field in the UK North Sea, its first major new project in the ageing basin in six years.

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Shell said the development, which includes the construction of a floating production, storage and offloading (FPSO) vessel, reaffirmed the Anglo-Dutch company's commitment to the region after it sold around half of its assets there last year.

The FPSO is expected to produce up to 45,000 barrels of oil equivalent per day (boe/d).

The project will generate profits even with oil prices below $40 a barrel, Shell said in a statement, making it competitive against other offshore basins and most of North America's shale production.

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