Just one day after Shell made the announcement sanctioning its redevelopment of the Penguins oil and gas field in the UK North Sea, Fluor has been announced as the project’s engineering, procurement and fabrication contractor.
Fluor will be responsible for EPC for the Penguins floating production storage and offloading (FPSO) vessel, the first new manned installation that Shell has installed in the North Sea in almost 30 year.
Fluor booked the undisclosed contract value in the fourth quarter of 2017, the company said in a statement.
The FPSO will have production capacity of 45,000 boe/d and storage of up to 400,000 barrels.It will be designed to operate continuously for 20 years without dry docking and will help extend the life of the Penguins oil and gas fields.
The redevelopment is has a go-forward breakeven price below $40/bbl, Shell said.
Fluor was able do drive down the project’s costs using its integrated EPC capabilities, with its fabrication services serving as a clear differentiator, according to a statement from Jim Brittain, the company’s president of energy and chemicals.
The project will be led by Fluor’s Manila, Philippines office and follows Fluor’s successful delivery of the Malampaya Phase 3 Project in the Philippines.