Licence P 8 - Licence Having Effect Under The Petroleum Act 1998 The Skiff Field

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17th September 2010

Pursuant to Regulation 5(8) of the above Regulations, the Secretary of State for Trade and Industry gives notice that, being content that the requirements of the above Regulations have been satisfied, he has pursuant to Licence P.8, granted a consent to Shell UK Limited to the getting of petroleum and the construction of installations in relation to the development of the Skiff gas field. The consent for the Skiff field took effect from 8 February 2000 and shall last until 17 September 2010.

The Skiff development lies in Block 48/20a, in the southern North Sea 72km north/north-east of the Norfolk coast. It is between the producing Galleon and Clipper fields.

The development will consist of a minimum facilities, normally unmanned installation (NUI). The NUI will be connected via a new pipeline to the existing Clipper platform which provides processing and export facility for the Skiff fluids of gas, condensate and water. Four wells are to be drilled (with a possibility of two more later).Three wells will have dual laterals, or horizontal sections, allowing for a single well to access two parts of the reservoir. Water-based drilling-mud will be used in all well sections. Oil-based mud will be available as a contingency on down-hole sections. If it is needed, then zero discharge of it will be achieved by 'skip and ship to shore'. Gases will be flared over 70 days during well testing, but the effects of flaring will be mitigated by design features such as the separation package, which will ensure high efficiency removal of all liquids from the gas phase, and continuous monitoring.

The Secretary of State is of the view, having regard to the environmental statement prepared in respect of the project and the comments received from those consulted, that the project is not likely to have a significant effect on the environment.

*Licence P 8 - Licence Having Effect Under The Petroleum Act 1998 The Skiff Field

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