Page 15 - EurOil Week 30 2022

EurOil PROJECTS & COMPANIES EurOil

Shell takes FID on Jackdaw

gas field

UK SHELL has taken a final investment decision are consistent with the UK’s North Sea Transi-
(FID) on developing the Jackdaw gas field in the tion Deal and Shell’s Powering Progress strategy,
The FID was taken UK North Sea, having overcome previous envi- providing the energy people need today while
despite the UK’s ronmental opposition to the project. serving as the foundation for investments in the
introduction of a Jackdaw, situated some 250 km east of Aber- low-carbon energy system of the future.”
windfall tax on North deen, will comprise a normally unmanned well- The UK government brought energy secu-
Sea profits. head platform along with subsea infrastructure rity to the forefront in a new energy strategy
tied back to Shell’s existing Shearwater gas hub. unveiled several months ago, pledging to sup-
The project is expected to come on stream in port increased investments in domestic oil and
the second half of 2025, with production seen gas supply to help the country curb its use of
peaking at 40,000 barrels of oil equivalent per imports, including from Russia. Later, however,
day (boepd) – more than 6% of UK North Sea the government also imposed a 15% windfall tax
gas production at that time. The field is estimated on the North Sea industry in a bid to raise funds
to hold between 120 and 250mn barrels of oil to shield energy consumers from higher costs – a
equivalent (boe) in reserves. move that the sector has warned will undermine
The project was held up last year after Shell’s efforts to secure energy security.
environmental statement was rejected, and the Shell’s difficulties at Jackdaw may not be over,
UK major responded by amending the plan to as environmental NGO Greenpeace has lodged
include new processes for gas venting and treat- a legal challenge over the consent that authorities
ment. The company now estimates that opera- gave Shell to go ahead with the project, the BBC
tional emissions from the field will be less than reported on July 26. Greenpeace says it is taking
1% of the whole UK basin. the government to court “because they approved
Shell earlier pledged to spend GBP500mn Jackdaw without checking the full impacts it
($600mn) on Jackdaw’s development, estimating would have on the climate.”
that the investment would provide a “significant “By refusing to consider a majority of its emis-
boost to companies, jobs and the prosperity of sions from Jackdaw, the government is sending
communities.” us further down the path towards irreversible
“We are committed to providing our custom- global warming,” the NGO said. “That means
ers with secure and stable supplies of energy, and more extreme weather events like the heatwave
to do so responsibly, efficiently and economi- we just experienced here in the UK and the heat-
cally,” Shell’s upstream director Zoe Yujnovich waves, floods and droughts that have continued
said in a statement. “Investments like Jackdaw to cause death and destruction globally.” ™

Week 30 29•July•2022 www. NEWSBASE .com P15