Royal Dutch Shell has reached a final investment decision for the development of the Fram gas and condensate field in the UK North Sea
Royal Dutch Shell has reached a final investment decision (FID) for the development of the Fram gas and condensate field in the UK North Sea.
The oil and gas giant said that the FID gives more momentum to its production growth in the North Sea after its decision to redevelop the Penguins oil and gas field.
Estimated to have a life of 20-30 years, Fram is spread across Blocks 29/3a, 29/4c, 29/8a, 29/9c in the Central North Sea, and is contained in water depth of 100m.
At peak production, the offshore field is estimated to yield about 41 million standard cubic feet a day of gas and 5,300 barrels per day of condensate. Put together, the production equates to 12,400 barrels of oil equivalent per day, said Shell.
Shell upstream director Andy Brown said that Fram is a simplified and cost-effective project that will allow it to develop this field profitably.
Through its ongoing work with partners to maximise the economic recovery of the North Sea, Shell has been able to transform and revitalise Shell’s UK Upstream business by focusing on competitive projects and cost effective operations.
Its development will see drilling of two wells. The produced natural gas liquids from the wells will be sent through a new subsea pipeline to the existing Starling field and then on to the Shearwater platform via existing pipelines.
In a news release, Vice president for Shell upstream in the U.K. and Ireland, Steve Phimister said that Shell has been able to reduce development costs by effectively collaborating across the supply chain and this has enabled it to invest in new projects such as Penguins and Fram. With its strong record of operational excellence and project execution, Shell will look to invest in further projects as it works to grow its business in the North Sea.