• Agreement With Shell For Phase I Development Gas Offtake Engineering Study
• Highlights: 
• Agreement has been reached with Shell to conduct an Engineering Study for the preferred offtake route and agreed tie-in option for the Phase I field development.
• The offtake route is via a tie-in to Shell’s Southern North Sea infrastructure for transportation to Bacton for onshore processing and delivery to the UK Gas National Transmission System
• The Engineering Study will be conducted by Petrofac and will provide a basis for design and cost estimate for the preferred gas offtake route for the tie-in of Hartshead facilities and the required brownfield facility modifications.
• Shell will provide assurance on the final study prior to commencing Front-End Engineering and Design studies.

Hartshead Resources has entered into an agreement with Shell UK Exploration & Production to undertake an Engineering Study for tie-in of Hartshead’s Phase I gas field development to Shell’s infrastructure. The Study agreement will provide a basis of design and cost estimate for the tie-in of facilities through Shell’s infrastructure detailing the required brownfield modifications as part of the gas offtake route for the Anning and Somerville gas fields. 

The study work will be undertaken by Petrofac and managed by Hartshead. Shell will provide project assurance, prior to entering the next phase of engineering work, which is the Front-end Engineering and Design (FEED), prior to final Field Development Plan (FDP) submission to the UK government.

The Engineering Study with Shell will define Hartshead’s route to transport its natural gas and condensate to the prospective points of sale and is, therefore, a critical component of the future FEED and FDP workstreams. 

The Company intends to fund the below scope of works, estimated to cost approximately £505,000, from existing cash reserves.

The scope of works with Shell encompasses:

• Provide guidance in relation to the deliverables.
• Ensure output and results of Petrofac Scope of Work fully complies with the Shell select phase for the feasibility study.

The scope of works with Petrofac encompasses:

• Offshore construction support for the subsea pipeline(s) tie-in activities on the Corvette to Leman Alpha export pipeline.
• Installation of line-of-sight communication dishes and interface connection.
• Pipework for successive stage-wise production flow routing, system control and integration production route export options across the asset.
• Control room integration of communications and all reporting systems with the new platforms.

The study is expected to take a total of 3 months. Upon completion the agreement will end.

KeyFacts Energy: Hartshead UK country profile