Repsol Sinopec Resources UK has started producing the first oil from Shaw field as part of the major redevelopment of Montrose Area in the Central North Sea.

The Montrose Area Redevelopment (MAR) project includes development of three new fields Godwin, Cayley and Shaw in the area. 

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The project will also include a new bridge-linked production platform (BLP) connected to the Montrose Alpha in order to provide additional process and plant support facilities. 

Repsol Sinopec Resources UK managing director Bill Dunnett said: “This is a major achievement for this business and will help to consolidate the transformation that Repsol Sinopec Resources has undergone in the last two years.

“The Montrose Area is a key part of our long-term future and we look forward to it safely delivering value for us, our shareholders and our partner Marubeni for many years to come.” 

Welcoming the move, Oil & Gas UK chief executive Deirdre Michie said: “This is a major redevelopment in an area of the North Sea that has been producing for many years.

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"It combines new and mature field activities that will extend the Montrose Area’s productive life."

“It combines new and mature field activities that will extend the Montrose Area’s productive life and demonstrates the potential that can still flow from the UK Continental Shelf with the right investment.” 

The Godwin field was developed through an extended reach well from the Arbroath platform, while the Cayley and Shaw fields were developed as subsea tie-backs to the BLP. 

After Cayley starts production by the end of the second quarter of this year, the gross incremental output is anticipated to reach up to 40,000boed. 

The company estimates to recover approximately 100 million boe of additional reserves through the project.

The MAR project is also expected to extend the life of the existing Montrose Area fields to beyond 2030. 

Repsol Sinopec Resources UK operates the Montrose Area with a working interest of 58.97%, while Marubeni Oil & Gas (UK) is the sole partner holding the remaining interest.