Shell, Deltic take FID on high-impact North Sea gas well
Shell and its junior partner Deltic Energy have taken a final investment decision (FID) on drilling a high-impact well targeting the Selene gas prospect in the south UK North Sea, Deltic announced on July 26.
The well at licence 2437 is targeting what Deltic describes as one of the largest unappraised structures in the Leman Sandstone fairway of the Southern gas basin, with Deltic estimating Selene's size at 318bn ft3 of P50 prospective gas resources.
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
Under the terms of Shell's farm-in deal at the licence in 2019, the UK major will cover three-quarters of the cost of drilling and testing the well, up to a cap of $25mn. Following the FID, Shell is now the licence's operator with a 50% interest, while Deltic holds the remaining 50%.
"The commitment to drill this material, high impact, low risk gas prospect is another highly significant milestone for Deltic and our team," Deltic CEO Graham Swindells said in a statement.
The partners will now undertake well design, planning, rig procurement and other preparations for drilling. They are also set to drill a well together at the Pensacola gas prospect, also in the south North Sea, this September.