The vessel which will produce Pierce, a new North Sea gas redevelopment project for Shell (LON: SHEL) , has arrived at the field in the UK.
The Haewene Brim floating production storage and offloading (FPSO) ship is completing its trip to the Pierce field, a redevelopment project for Shell 165 miles east of Aberdeen.
The FPSO has been based at the Aibel yard in Haugesund, Norway for several months of refurbishment work.
Pierce has historically been an oil-producing field, with associated gas being compressed and reinjected.
This new project will allow for associated gas to be exported via a new pipeline to the St Fergus terminal in Aberdeenshire.
London-listed supermajor Shell has previously said it is targeting a Q2 start-up for the redevelopment scheme.
The vessel is now at the Pierce field, having spent six months at Haugesund.
From oil to gas
Pierce was first brought online in 1999 and is owned 92.52% by Shell, with the remaining 7.48% held by Ithaca Energy.
The partners took a final investment decision (FID) on the redevelopment project in 2019, saying it would increase production to 30,000 barrels per day, up from 20,500 barrels per day prior to the FPSO leaving Pierce.
Shell did not disclose at the time any details of expected gas volumes or the cost of the project, but is on record as saying breakeven costs are $20 per barrel.
The arrival of the Haewene Brim comes as the UK is seeking to boost its domestic supply of gas to tackle increased costs and reduce reliance on imports.
Earlier this month UK regulators gave Shell the go-ahead to develop the Jackdaw gas project in the Central North Sea, a tie-back to the Shearwater production hub.
The project had looked uncertain when environmental watchdog OPRED blocked its progression last year.
Shell has said that, at its peak, Jackdaw could account for 6.5% of UK gas, with the aim of first production in Q3-Q4 2025.
The oil major’s share price has dipped 10% over the last month to £21.46.
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