Shell hopes to woo regulator with fresh plans for major North Sea gas field
Shell has revived its efforts to develop a major North Sea gas field after previous attempts were shut down by regulators over environmental concerns.
The fossil fuel firm has published an amended plan for the development of the Jackdaw field, at the Shearwater hub in the central North Sea.
It is hoping to launch production by the third or fourth quarter of 2025, with an aim that the field will supply 6.5 per cent of the UK’s gas output. The field has reserves equivalent to between 120m and 250m barrels of oil.
The regulator took issue with prior plans over the levels of carbon dioxide that would be released into the atmosphere.
Under new plans, some of the naturally-occuring carbon dioxide will be exported to an onshore terminal where it will be further treated.
News agency Reuters have cited an industry source as saying that a final decision on the development could be provided within three months, as long as no new obstacles arise.
It comes as the government has been putting on pressure for North Sea producers to intensify their oil and gas output in a bid to reduce dependency on Russian energy.
The Jackdaw development was rejected in October by the offshore petroleum regulator for environment and decommissioning (OPRED).
It comes as Shell may revive its plans to invest in Cambo, a proposed oilfield off the coast of the Shetland Islands.
In its annual report, Shell said it was still in discussions with Siccar Point Energy and UK ministers to “map out the next steps” of the Cambo project. This development could provide up to 800m barrels of oil.
It said: “Shell continues to work with its co-venturer and the UK government to map out the next steps on Cambo.”
What’s more, CityA.M. reported this week that business secretary Kwasi Kwarteng has made calls for further North Sea oil and gas exploration, while Prime Minister Boris Johnson held a roundtable with energy leaders to discuss options to speed up domestic developments.