Shell has announced the restart of production at the Penguins field in the UK North Sea, marking a significant boost to the UK's domestic energy supply. The revitalized field utilizes a new, state-of-the-art floating production, storage, and offloading (FPSO) facility, replacing the aging infrastructure previously used. This development not only enhances energy security but also incorporates modern technology to reduce environmental impact.

The Penguins field, located approximately 150 miles northeast of the Shetland Islands in 165 meters of water, was initially discovered in 1974 and produced oil and gas from 2003 to 2021. Its production was halted in 2021 due to the decommissioning of the Brent Charlie platform, which served as the export route. Shell, in partnership with NEO Energy (both holding a 50% stake), has invested in a complete redevelopment of the field, drilling new wells and installing the cutting-edge FPSO.

Peak production from the Penguins field is estimated at around 45,000 barrels of oil equivalent per day (boe/d), with current estimated recoverable resources of approximately 100 million boe. While the primary output is oil, the field will also produce substantial amounts of natural gas, enough to heat approximately 700,000 UK homes annually.

The new FPSO is a significant upgrade, boasting a cylindrical hull design for enhanced efficiency and flexibility. It also incorporates a flareless system, recycling vapor back into the tanks, significantly reducing emissions. Compared to the previous Brent Charlie platform, the new facility is expected to have around 30% lower operational emissions.

The oil produced will be transported by tanker to refineries, some of which supply refined products like petrol and diesel back to the UK, addressing the nation's limited refining capacity. The natural gas will be transported via existing pipelines to the St Fergus gas terminal in northeast Scotland, feeding directly into the UK's national gas network.

"Today, the UK relies on imports to meet much of its demand for oil and gas,” said Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director. “The Penguins field is a source of the secure domestic energy production people need today, and the FPSO is a demonstration of our investment in competitive projects that create more value with less emissions.”

This project is particularly timely given the declining oil and gas production in the North Sea. According to the North Sea Transition Authority, production has fallen by 11% in the last year, and UK production is decreasing faster than demand. Penguins represents a crucial effort to bolster domestic energy resources and reduce reliance on imports.