Shell’s redevelopment of a North Sea field will deliver a “significant boost” to north-east communities, the Scottish Government said.
Energy Minister Paul Wheelhouse said the investment was “further evidence of rising confidence” in the region.
The oil giant said today it had taken a final investment decision on the Penguins area, north-east of Shetland.
The project will involve the construction of Shell’s first new manned installation in the northern North Sea in almost 30 years.
Mr Wheelhouse said: “We have always maintained there are significant opportunities remaining in the North Sea, even in the context of a low carbon transition, and that a strong and vibrant domestic offshore oil and gas industry will play an essential role in the future energy system we set out in our recently published Energy Strategy.
“Our work to date to support the sector is seeing us invest £90million in the Oil and Gas Technology Centre, and through further funding for research, innovation and skills development for the sector means that Scotland is now very well placed to capitalise on this investment domestically and in export markets, with opportunities for workers and businesses throughout Scotland’s oil and gas supply chain.
“This continues to remain an important time for the industry, as the sector aims to embed sustainable efficiencies in production costs and we have seen prices stabilise and even increase in recent weeks to, at times, more than $70 a barrel.
“This latest news, coming as it does after a number of key asset transfers and inward investments, adds further momentum to the recovery and is a sign of Shell’s commitment to the North Sea Basin.”
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