UK to OK Shell's North Sea gas project to provide 6.5% of nation's gas

Robert Besser
28 May 2022, 17:27 GMT+10

UK officials are expected to approve a request by Shell Oil to develop a North Sea gas field, which earlier was prevented from development
UK regulator, the Offshore Petroleum Regulator for Environment and Decommissioning, is expected to approve the development plan
In March, Shell sent its updated environmental development plans for the Jackdaw field to OPRED

LONDON, England: UK officials are expected to approve a request by Shell Oil to develop a North Sea gas field, which earlier was prevented from development.

Sources told Reuters that UK regulator, the Offshore Petroleum Regulator for Environment and Decommissioning (OPRED), is expected to approve the development plan. The Shell plan was initially rejected for environmental reasons.

In March, Shell sent its updated environmental development plans for the Jackdaw field to OPRED.

Under the new plan, Shell will begin production at the field by the second half of 2025, supplying 6.5 percent of Britain's gas needs.

In October, OPRED rejected Shell's first development plan for the field, which has reserves of between 120 and 250 million barrels of oil equivalent.

Reuters reports that after no significant objections were raised during a public consultation period, regulators are now expected to give the go-ahead to the new plan within days.

"Development proposals for oilfields under existing licenses are a matter for the independent regulators. No decision has been taken yet," a government spokesperson said.

Shell has not commented on the reports.

The new application comes amidst surging energy prices in the UK due to Russia's invasion of Ukraine, leading the British government to urge domestic producers to ramp up domestic oil and gas production.

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