UK to approve Shell's request to develop gas field

LONDON, England : UK officials are expected to approve Shell Oil's request to develop a North Sea gas field that was previously prevented from development.

Sources told Reuters that the UK's Offshore Petroleum Regulator for Environment and Decommissioning OPRED is expected to approve the development plan. The Shell plan was initially rejected for environmental reasons.

In March, Shell sent updated environmental development plans for the Jackdaw field to OPRED.

In October, OPRED rejected Shell's first development plan for the field, which has reserves of between 120 and 250 million barrels of oil equivalent.

After no significant objections were raised during a public consultation period, regulators are expected to give the go-ahead to the new plan within a few days, according to Reuters.

The development proposals for oilfields with existing licenses are a matter for the independent regulators. A government spokeswoman said there was no decision yet.

Shell hasn't commented on the reports.

The British government has called on domestic producers to increase domestic oil and gas production due to the surge in energy prices in the UK due to Russia's invasion of Ukraine.