In 2018, Shell made a final investment decision (FID) to redevelop the Penguins oil and gas field, marking the first new installation by the company in the northern North Sea in nearly 30 years. The redevelopment included constructing the FPSO Penguins, which was installed at the Penguins field in July 2024. Sevan SSP played a key role in the design, preparation, and installation of the FPSO.
The FPSO, designed with a Sevan 400 structure, has a processing capacity of 45,000 barrels per day (bbl/d) and can store up to 400,000 barrels of oil. Built in China by Offshore Oil Engineering Company (COOEC) and completed at Aibel’s yard in Haugesund, Norway, the vessel is now operational in the UK North Sea, 241 kilometers (150 miles) northeast of the Shetland Islands. It has restored production at the Penguins field, which had ceased following the decommissioning of the Brent Charlie platform in 2021.
Shell operates the Penguins field with a 50% stake, while NEO Energy holds the remaining share. Peak production from the field is estimated at 45,000 barrels of oil equivalent per day (boe/d), with discovered recoverable resources around 100 million boe.
Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, emphasized that the Penguins field is crucial for the UK’s domestic energy supply. She highlighted that the FPSO represents Shell’s commitment to sustainable, competitive energy projects that produce more value with fewer emissions.
Although primarily focused on oil production, the field is also expected to generate enough natural gas to supply heat to approximately 700,000 UK homes annually. The FPSO’s design ensures about 30% lower operational emissions compared to the previous Brent Charlie platform, extending the field’s operational life by up to 20 years.
Natural gas from the field will be transported through an existing pipeline to the St Fergus Gas Terminal in Scotland, feeding into the UK’s national gas network. Oil will be shipped by tanker to refineries outside the UK, particularly those supplying refined products like petrol and diesel, addressing the country’s limited refining capacity.
The redevelopment included drilling additional wells tied back to the new FPSO. The Penguins field, discovered in 1974, previously produced oil and gas from 2003 until 2021. The FPSO Penguins, with its innovative Sevan design, features a compact cylindrical hull for greater efficiency and flexibility, along with a flareless system that reduces emissions by recycling vapors back into the tanks.
At 118 meters tall (equivalent to a 42-story building), the FPSO weighs 32,000 metric tons and is built to withstand harsh sea conditions. It can process 12.75 million barrels of crude oil and 1.24 billion cubic meters of natural gas per year, with a crude oil storage capacity of 400,000 barrels.
Shell’s Penguins project aligns with its broader goal of achieving greater than 500,000 barrels of oil equivalent per day in peak production from its upstream and integrated gas projects between 2023 and 2025. As part of its commitment to becoming a net-zero emissions business by 2050, Shell achieved over 60% of its goal to cut emissions from its operations (Scopes 1 and 2) by 2030 compared to 2016 levels.
Between 2023 and 2025, Shell is investing $10–15 billion in low-carbon energy solutions, alongside $13 billion annually for oil and gas development, focusing on LNG. This investment could total more than $100 billion by 2030.
In December 2024, Shell and Equinor announced plans to combine their UK offshore oil and gas assets to form the UK North Sea’s largest independent producer. Shell will transfer its equity in the Penguins field to the new company, which will be equally owned by Shell and Equinor. However, both companies face legal challenges related to two projects: Shell’s Jackdaw in the North Sea and Equinor’s Rosebank west of the Shetland Islands.
A recent court ruling reversed the UK government’s approval of these projects, citing failure to account for emissions from the eventual use of the oil and gas produced. While the ruling allows work on both projects to continue, Shell and Equinor will need to reapply for development consent, including an assessment of Scope 3 emissions for each project.
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