Shell UK Ltd., with partners Rockrose Energy and Dyas UK Ltd., reported reaching a final investment decision to develop Arran gas and condensate field in the UK North Sea. Shell has become the operator of the Arran project.
The FID remains subject to approval of the field development plan by the Oil & Gas Authority. Arran field lies 240 km east of Aberdeen on Blocks P359a/b, P1051, and P1720. The field was discovered in 1985.
At peak, Arran is expected to produce 100 MMscfd of gas and 4,000 b/d of condensate, which combined to 21,000 boe/d. Four development wells will be drilled. The natural gas and liquids will be transported via a newly installed subsea pipeline to the Shearwater platform.
This is Shell’s fourth FID announcement in the UK North Sea this year, following the decision to redevelop Penguins field in the northern North Sea, Alligin field West of Shetland, and Fram field in the central North Sea.
Steve Phimister, Shell vice-president for upstream in the UK and Ireland, called Arran “an important addition to Shell’s portfolio as we seek to strategically grow our central North Sea production around the Shearwater hub.”
Shell has 44.57% interest in Arran while Rockrose has 30.43% and Dyas has 25%.
Andy Samuel, OGA chief executive, said Arran field’s development called for “real adaptability and tenacity.” He said Arran field “has been on our radar for quite some time as a key component of our Central Graben Area Plan.”
Previously, Arran was operated by Dana Petroleum, which sold its interest to Rockrose (OGJ Online, Aug. 9, 2018).
In July, Serica Energy PLC, London, said it expects gross production of as much as 40 MMcfd of gas and 1,150 b/d of condensate from Columbus field in the central UK North Sea, development of which is contingent on development of larger Arran gas-condensate field (OGJ Online, July 22, 2018).
