Penguins Redevelopment

Project Overview

The Penguins Redevelopment is a significant oil and gas project located in the UK North Sea, specifically in the northern sector. Here are the key details of the project:

Location

The Penguins field is situated approximately 150 miles (240 km) northeast of the Shetland Islands in Scotland, within the UK Continental Shelf (UKCS) blocks 211/13 (Penguins West) and 211/14 (Penguins East). It lies adjacent to the UK/Norway median line.

History and Discovery

The Penguins oil and gas field was discovered in 1974. The initial development began in 2002, with the field tied back to the Brent Charlie Platform. However, due to the cessation of production at Brent Charlie in 2021, Shell initiated the redevelopment of the Penguins field.

Ownership and Operation

The Penguins Redevelopment project is jointly owned by Shell (50%) and Neo Energy Group (50%). Shell U.K. Limited is the operator of the project.

Project Details

Final Investment Decision (FID) and Timeline

The final investment decision (FID) for the redevelopment was made in January 2018. The project is currently in the commissioning stage, with commercial production expected to start in the third or fourth quarter of 2024. Production is forecast to peak in 2025 and continue until the field reaches its economic limit in 2039.

Infrastructure and Technology

• FPSO Vessel: The project involves the deployment of a new Floating, Production, Storage, and Offloading (FPSO) vessel, specifically a Sevan 400 FPSO. This vessel has a storage capacity of 400,000 barrels and is designed to operate for 20 years without dry docking. The FPSO is a cylinder-type deepwater design, constructed at China Offshore Oil Engineering’s (COOEC’s) Qingdao Yard in China.
• Wells and Subsea Infrastructure: The redevelopment includes the drilling of approximately eight new wells, which will be tied back to the FPSO. The project also involves the installation of subsea manifolds, subsea trees, pipeline bundles containing pipe-in-pipe production flowlines, gas lift flowlines, and control systems. A 9km 16-inch gas export pipeline and associated sub-sea tie-ins are also part of the infrastructure.

Production and Reserves

• Production Capacity: The project is expected to have an average peak production of 45,000 barrels of oil equivalent per day (boe/d).
• Reserves: The estimated resources for the Penguins Redevelopment are approximately 57 million barrels of oil equivalent (boe).

Contractors Involved

• Main EPC: Subsea 7 is responsible for the engineering, procurement, construction, and installation (EPCI) contract.
• EPC Contractors: Fluor, Magnora, and China Offshore Oil Engineering (COOEC) are involved in various aspects of the project, including the engineering, procurement, and fabrication works for the FPSO vessel.
• Other Contractors: A.P. Moller - Maersk, Aibel, Det Norske Veritas Holding (DNV GL), Fuglesangs, and DMAR Engineering are also contributing to the project.

Environmental and Operational Aspects

• The redevelopment aims to extend the field life and production beyond 2035 with significantly reduced emissions intensity compared to the previous host, Brent Charlie.
• The project includes the installation of mooring chains, mooring piles, and a Waverider buoy. The FPSO tow and hook-up are planned for Q2/Q3 2024.

Transportation and Export

• Oil will be transported from the FPSO to refineries using tankers.
• Gas will be exported to the St Fergus Gas Terminal in northeast Scotland via the Far North Liquids and Associated Gas System (FLAGS) pipeline.

This comprehensive redevelopment is designed to address the challenges of low natural reservoir pressure and reservoir compartmentalization, ensuring efficient and sustainable oil and gas production from the Penguins field.