Shell’s confirmation that it is expanding the Shearwater hub could lead to further North Sea investment, according to an analyst.
The Shearwater platform will serve newly-sanctioned projects like Fram and Arran, as well as the nearby Columbus field.
However, Jack Allardyce from Cantor Fitzgerald, highlighted that it could be host to other discoveries such as Jackdaw, which have been “mired in development purgatory”.
Shell holds a 74% stake in Jackdaw, which was discovered in 2005 and is thought to be capable of producing more than 100million barrels of oil equivalent.
The hub expansion is the operator’s seventh investment decision in the UK North Sea, showing the “ongoing commitment” to the region.