Shell has restarted production at the Penguins field in the UK North Sea, deploying a modern floating production, storage and offloading (FPSO) facility.
The redevelopment replaces the previous export route, which relied on the Brent Charlie platform before its shutdown in 2021. The project is operated by Shell U.K. with a 50% stake, while NEO Energy holds the remaining share.
The field is expected to reach peak production of approximately 45,000 barrels of oil equivalent per day (boe/d). Estimated recoverable resources stand at around 100 million boe, with the field primarily producing crude oil alongside natural gas capable of meeting the annual heating needs of about 700,000 UK households.
The introduction of the FPSO is expected to extend the operational life of Penguins by up to 20 years while reducing emissions by approximately 30% compared to the Brent Charlie platform.
Oil from the field will be transported by tanker to refineries outside the UK, including those that supply refined fuels such as petrol and diesel back to the domestic market. Meanwhile, natural gas will be sent via an existing pipeline to the St Fergus gas terminal in Scotland, which connects to the UK’s national gas network.
Shell integrated gas and upstream director Zoë Yujnovich said: “Today, the UK relies on imports to meet much of its demand for oil and gas.
“The Penguins field is a source of the secure domestic energy production people need today, and the FPSO is a demonstration of our investment in competitive projects that create more value with less emissions.”
Discovered in 1974, the Penguins field was previously in operation from 2003 to 2021. The redevelopment has involved drilling additional wells and tying them back to the newly installed FPSO.
The field is situated in waters approximately 165m deep, around 241.4km north-east of the Shetland Islands.
The FPSO, built by Norway-based Sevan, features a cylindrical hull design that enhances efficiency and flexibility. It also incorporates a flareless system that recycles vapour back into storage tanks, reducing emissions.
With a process capacity of 45,000 barrels per day and a storage capacity of 400,000 barrels, the facility was contracted by Fluor. It underwent final completion and commissioning at Aibel’s yard in Haugesund, Norway.
The restart of production at Penguins aligns with Shell’s broader strategy for its North Sea operations.
In December 2024, Shell U.K. announced plans to merge its UK offshore oil and gas assets with Equinor UK. Once completed, the joint venture will form the largest independent producer in the UK North Sea, with equal ownership split between Shell and Equinor.
As part of this transaction, Shell’s equity interests in the Penguins field will be transferred to the new entity.
