Shell has started production from the Fram gas and condensate field in the UK North Sea, it said Sept. 8, as work continues on a revamp of the delayed Shearwater infrastructure hub and the company reviews its overall strategy.
In a statement, Shell said Fram had come on stream on June 16 and is expected to produce 12,400 b/d of oil equivalent at peak, comprising 41 MMcf/d of gas and 5,300 b/d of condensate.
Natural gas liquids from two wells are to be transported via the Starling field to Shearwater, which feeds gas to the Bacton terminal on the east coast of England, but is being redeveloped to supply the St. Fergus gas plant and Fife natural gas liquids and ethylene plants in Scotland. The Shearwater redevelopment is due on stream next year following a delay related to the COVID-19 crisis.
Fram was originally discovered, in relatively shallow waters, in 1969. Shell is the operator with a 32% stake, with ExxonMobil holding the remaining 68%.
Announcing the investment decision in 2018, Shell said successful cost reduction was enabling it to make several investments in the North Sea, previously considered one of the world's most expensive oil and gas provinces.
The Anglo-Dutch major approved the Penguins oil redevelopment project earlier that year and went on to approve the Arran gas and condensate project, which will also feed into Shearwater, in October 2018, before announcing the Shearwater redevelopment in December 2018.
The COVID-19 crisis and oil price collapse have prompted a number of delays to Shell's UK projects and the company has been undertaking a strategy review, to be unveiled on Feb. 11 next year.
However, CEO Ben van Beurden voiced confidence, particularly in the UK West of Shetland area, at the company's Q2 results presentation on July 30. Noting the ongoing review, he said of the West of Shetland area, where Shell is a partner in a number of fields: "We are still very much committed to that area...We see still a lot of potential in the West of Shetland area -- Clair, Schiehallion. We see further running room there."
A decision on whether to develop the Cambo field, in which Shell is a partner with Siccar Point Energy, was delayed once again in March. The field is believed to hold over 800 million barrels of oil "in place."
