Well issues cause Shell to re-think UK Fram offshore project

Offshore staff

ABERDEEN, UK – Shell (NYSE:RDS.A) is reassessing its development plan for the Fram oil and gas field in the UK central North Sea following unexpected well results.

The company had planned a 35,000 boe/d development using an FPSO. Britain’s government approved the project in October, and development drilling started last year. However, early assessment of the results suggests a revised strategy is needed.

Drilling will continue over the next few months. Shell and partner ExxonMobil will evaluate the potential of the Fram reservoirs, with a view to devise an alternative development approach.

In light of these events, Shell has decided not to continue with several key contracts including the FPSO. SBM Offshore had been working on an FPSO solution under a letter of interim award announced last June.

Fram is 220 km (137 mi) east of Aberdeen in 100 m (328 ft) water depth.


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