Shell flags delay to gas exports from UK Pierce field

Market: Crude oil, Natural gas
27/10/22

Shell today flagged a slight delay to the start of gas exports from the redeveloped Pierce field in the UK North Sea, while it is still mulling its options over the controversial Cambo field west of Shetlands.

The firm is now aiming for first gas from the Pierce redevelopment project by the end of the year, having previously targeted an autumn start-up, chief financial officer Sinead Gorman said. Pierce started as an oil-producing field back in 1999, with the associated gas reinjected. Since 2019 Shell has been working on a redevelopment project to enable gas exports.

The work has involved modifying the field's existing production, storage and offloading (FPSO) vessel, drilling new wells and installing a new sub-sea gas export line from the FPSO to the SEGAL pipeline system. Once back on stream, the Pierce field is expected to produce more than 30,000 b/d oil oil equivalent (boe/d) at peak output.

Gorman also said today that the 45,000 boe/d Penguins redevelopment project in the UK North Sea is progressing well but she declined to give a timing for the sail-away date for its FPSO.

On the Cambo oil field in the west of Shetlands area, where Shell was reported to have been in talks about a sale of its 30pc stake this summer, Gorman said the company is looking at its options but that nothing has changed on its view of the project. "It remains uneconomic from our perspective to be able to follow through on that."

Cambo is now operated by Ithaca Energy after it completed its takeover of fellow independent Siccar Point in June. Cambo has attracted the ire of environmental campaigners. Ithaca has said it plans a final investment decision on the field in 2023.

By Jon Mainwaring

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