Shell has now become the operator of the Arran project. RockRose also announced the completion of the acquisition of a 20.43 per cent interest in blocks, 23/11a, 23/16b and 23/16c, which contain the Arran field. RockRose also increased its interest in Arran to 30.43 per cent.
At peak production, Arran is expected to produce around 100 million standard cubic feet a day of gas and 4,000 barrels per day of condensate, which combined equates to 21,000 barrels of oil equivalent per day (gross).
Four new development wells will be drilled and the natural gas and liquids they produce will be transported via a newly installed subsea pipeline to the Shearwater platform.
Lucy King, research analyst at Wood Mackenzie, said: “Shell’s FID for Arran is the 11th FID for the UK North Sea this year. Sanctioning this at a time when development costs are lower results in a low breakeven, quick payback and provides a boost to the strategically important Shearwater hub and wider Central North Sea area. The OGA will be pleased.”
She added: “Both operatorship and partnership has been re-shuffled to drive this project forward – a good case study of assets in the right hands in action.”