Shell Resumes North Sea Production With First New FPSO In Over 20 Years

Shell PLC SHEL shares are trading higher on Tuesday. The oil giant disclosed it resumed production at the Penguins field in the North Sea off the U.K. using a new floating production, storage and offloading (FPSO) facility.

The Penguins FPSO is Shell's first newly operated facility in the North Sea in over 20 years. Shell operates the field with a 50% stake, alongside NEO Energy (50%).

Previously, the field exported via the Brent Charlie platform, which ceased production in 2021 and is now being decommissioned.

The company targets peak production at the Penguins field to reach approximately 45,000 barrels of oil equivalent per day (boe/d), with estimated recoverable resources of around 100 million boe.

The new FPSO is designed to reduce operational emissions by around 30% compared to the Brent Charlie platform and is expected to extend the field's lifespan by up to 20 years.

Shell Integrated Gas and Upstream Director Zoë Yujnovich said, "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."

Last week, Shell reported fourth-quarter revenue of $66.28 billion missed the consensus of $71.82 billion and adjusted earnings per ADS for the quarter of $1.20, missing the consensus of $1.49.

Investors can gain exposure to Shell via First Trust Exchange-Traded Fund IV FT Energy Income Partners Strategy ETF EIPX and VanEck Natural Resources ETF HAP.

SHEL Price Action: Shell shares are up 2.18% at $66.59 at publication Tuesday.

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