Shell UK has announced a final investment decision (FID) for the Victory gas field, signalling a significant move to bolster domestic gas production in the UK.
Located approximately 47km north-west of the Shetland Islands, the field is set to contribute to the supply of gas for Britain’s homes, businesses and power generation.
The development plan includes a single subsea well tied back to the existing Greater Laggan Area system infrastructure via a new 16km pipeline.
According to the North Sea Transition Authority, only 38% of the UK’s gas consumption in 2022 was domestically produced, with the remainder being imported.
The Victory field is a strategic asset in reducing reliance on imports.
Victory is expected to commence operations mid-decade, with a production capacity of around 150 million standard cubic feet per day, or approximately 25,000 barrels of oil equivalent per day.
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The majority of the Victory field’s recoverable gas is projected to be extracted by the end of the decade.
Gas from Victory will be processed at the Shetland Gas Plant before entering the National Grid at St Fergus.
Shell UK is also contributing to the Acorn carbon capture and storage project in the same region.
Shell UK upstream senior vice-president Simon Roddy said: “The UK North Sea is a critical national resource, providing a steady supply of the fuels people rely on today and strengthening the country’s energy security and resilience.
“Continued investment is required to sustain domestic production, which is declining faster than the UK’s demand for oil and gas.”
In November 2022, Shell UK acquired a 100% interest in Corallian Energy, which included the P2596 Victory licence for gas development west of Shetland.
Earlier this week, Shell agreed to sell its onshore oil operations in Nigeria to Renaissance in a deal valued at $2.4bn (£1.89bn).