SHELL AND ITHACA ENERGY APPROVE UPGRADE OF PIERCE FIELD IN THE UK NORTH SEA
Shell and its partner Ithaca Energy have taken a final investment decision to build new gas production facilities at the UK’s Pierce field in the Central North Sea.
The project involves modifying the existing floating production, support and offloading (FPSO) vessel and installing a sub-sea 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.
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.
The Pierce Depressurisation Project will enable Shell to start exporting gas from the Pierce field via the SEGAL pipeline to St Fergus in Scotland, the site of one of the UK’s main gas terminals, Shell said.
The development work is scheduled to take place between 2020 and 2021 and, when complete, the Pierce field is expected to produce more than 30,000 b/d oil equivalent at peak production, the oil major said.
Pierce lies in blocks 23/22a and 23/27, 280km east of Aberdeen. The field comprises two accumulations: Pierce North (formerly Medan) and Pierce South (formerly Pierce).
Pierce was discovered in 1975, when the semisubmersible Sedneth 701, drilling for Ranger Oil, tested 3,000b/d of 40° API crude and 1.95 million cubic feet a day of gas from the Palaeocene sands reservoir with its well 23/27-3.