Penguin East

Location and Geology

• The Penguin East field is situated in block 211/13a, known as the PENGUIN EAST AREA, in the northern North Sea.
• It is located approximately 150 km from the Scottish coastline, near the UK/Norway median line.

Water Depth

• The field is in shallow water with a depth of about 548 feet.

Discovery and History

• The Penguin East field was discovered in 1974, along with the broader Penguins cluster which includes fields A, C, D, and E.

Ownership

• The field is owned by Exxon Mobil and Royal Dutch Shell (Shell U.K.).

Production History

• The field began production as part of a subsea development tied back to the Brent Charlie platform in 2003.
• Peak production was achieved in 2004, with approximately 16.15 thousand barrels per day (bpd) of crude oil and condensate, and 48 million cubic feet per day (Mmcfd) of natural gas.

Current Status and Redevelopment

• Due to the cessation of production at Brent Charlie in 2021, Shell is redeveloping the Penguins field, including Penguin East, to extend field life and production beyond 2035. This redevelopment involves producing the field via a new Floating Production, Storage, and Offloading (FPSO) facility.
• The redevelopment project, known as the Penguins Redevelopment, includes drilling approximately eight new wells and installing new subsea infrastructure. This project is expected to start commercial production in 2024 and peak in 2025.

Production Forecast

• Production from the Penguins Redevelopment, including Penguin East, is forecast to continue until the field reaches its economic limit in 2039.

Remaining Reserves

• As of the latest data, the Penguin East field has recovered 94.80% of its total recoverable reserves. The remaining recoverable reserves are estimated to be 3.09 million barrels of oil equivalent (Mmboe), comprising 1.39 million barrels of crude oil and condensate, and 10.21 billion cubic feet (bcf) of natural gas.

Contractors and Infrastructure

• The Penguins Redevelopment project involves several key contractors, including Subsea 7 as the main EPC contractor, and other contractors such as Fluor, China Offshore Oil Engineering, A.P. Moller - Maersk, Aibel, and others.
• The new FPSO vessel, which is part of the redevelopment, is currently undergoing final preparation work at Aibel’s yard in Haugesund, Norway.

Environmental and Regulatory Aspects

• The redevelopment aims to extend field life and production with significantly reduced emissions intensity compared to the previous host, Brent Charlie. The project has undergone environmental assessments and has been subject to various regulatory approvals.

In summary, the Penguin East oil field is part of the broader Penguins cluster, which is undergoing a significant redevelopment to extend its production life and reduce emissions, with new infrastructure and production expected to commence in 2024.