Royal Dutch Shell and Ithaca Energy have given the go-ahead for upgrading the Pierce oil field in the British North Sea so that it can produce natural gas, Shell said on Oct. 3.
The project involves modifying the existing FPSO and installing a subsea gas export line from the FPSO to the SEGAL pipeline. It also involves drilling new wells in the field, which now produces oil and reinjects gas into the reservoir.
“This important development of the Pierce Field will allow us to unlock additional gas reserves for the UK,” said Steve Phimister, head of Shell’s North Sea.
Pierce is Shell’s eighth final investment decision in Britain’s Continental Shelf since the start of 2018, Phimister added.
It is a joint venture between Shell, which holds a 92.52% stake and Ithaca Energy, which is held by Israel’s Delek Group, with a 7.48% stake.
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