Project Profile
Value: US$350 million (Phase 1 & 2 only) - overall cost of approx. US$500 million
Location: Northern North Sea on the UK continental shelf
Area: 10-by-20-km
Production: 40,000 b/d of oil and 70 mmscf/d of gas
Depth: 140 to 200m
Start-up Year: 2003
The Penguin Development Project is located in the Northern North Sea on the UK continental shelf. The project is made up of five fields collectively containing the third largest undeveloped accumulation of hydrocarbons on the UK continental shelf. Penguins A, B, C, D, and E extend over a 10-by-20-km area in blocks 211/13a, 211/14 REST and 211/29F1.
The fields are located close to the UK/Norway median line, in water depths ranging from 140 to 200 m. The Penguin’s exploration dates far back to the 1970s and was spread over 17 years through to 1991, with 10 exploration and appraisal wells following the first discovery well in 1974; first oil and gas was produced in January 2003.
Although the first Penguin field was discovered in 1974, advances in subsea technology and greater well engineering efficiency have only now allowed the cluster to be developed and due to the continuing uncertainty over reservoir performance, the development is being done in phases. Subsea completions are tied-back via a single 16-inch diametre production pipeline to the Brent Charlie Platform, which at 65km is the longest sub-sea tie-back in the North Sea. In February 2016 leading engineering players and yards in China, prepared to compete for a major turnkey contract covering a floating production vessel for the Penguins project. Shell is the operator of the project with a joint interest of 50% with Esso Exploration & Production Ltd.
Operators:
Shell: Operator with 50% interest
Esso Exploration & Production Ltd: 50% interest
Contractors:
Saipem: EPIC contract
Subcontractors:
JP Kenny: Contract to design the pipeline under sub-contract to the installation contractor Saipem
Foundocean: Flowline Protection Unit Supports
COOEC: FSPO construction (subcontracted by Fluor)