Starling Development On Stream - Safely, On Time and On Budget

14 January, 2008. This news release issued by Shell U.K. Limited.

Shell U.K. Limited (Shell) as operator and Esso Exploration and Production UK Limited, (ExxonMobil), today announce an increase in gas supply to the UK with the commencement of production from the £175 million Starling field in the central North Sea, safely, on schedule and within budget.

John Gallagher, vice president Technical, Shell Exploration & Production in Europe, said: “Shell is pleased to make this announcement. It provides further demonstration of our continuous investment in North Sea opportunities, which Shell has the technology and the infrastructure to support, and our commitment to energy supply for the UK.”

“Starling is a welcome addition to our production portfolio. It brings with it the potential for further development in the area through the possibility of a future tie-in of Fram, a gas condensate prospect 15 kms south-east of Starling.”

John Dashwood, Joint Interest manager UK/Netherlands, ExxonMobil International Limited, said: “ExxonMobil has a long-standing track-record and commitment to the development of oil and gas resources in the North Sea. This development makes excellent use of existing infrastructure thereby providing a cost-effective solution for transporting gas reserves to market, contributing to the UK's energy supplies."

The Starling field, in block 29/3a (licence P.012) at a water depth of 100 metres, operates as a sub-sea tie-back to Shearwater. Fluids are transported via a flowline to the Shell-operated Shearwater installation, 33 kms to the north east.  Produced gas is exported to the Bacton processing terminal via the SEAL pipeline, and oil and natural gas liquids are exported to BP’s Kinneil processing terminal via the Forties pipeline.

Peak production is estimated at some 140 MMscf/d (4 mln m³ per day).

The development is through two production wells, with total investment cost in the region of £175 million.

Notes to editors:
Licensees:
Shell :  28% (Operator) ExxonMobil :  72%

Reservoir:
The field was discovered by exploration well 29/3a-2 in 1979, and was subsequently appraised by well 29/3a-7, drilled in 2003.