Paladin Resources PLC
18 October 2004
Paladin Resources plc
("Paladin" or "the Company")
Re: Statement by Shell U.K. Limited ("Shell")
The Board of Paladin notes the announcement made today by Shell in relation to
the Goldeneye gas condensate field, in which Paladin holds a 7.5 percent
"First production from Shell operated Goldeneye Field
secures new UK energy supplies
Shell U.K. Limited (Shell) on behalf of co-venturers Esso Exploration and
Production UK Ltd, (an ExxonMobil subsidiary) Paladin Resources plc and Centrica
Energy, announce today, Monday 18 October, the production of gas has commenced
from the Goldeneye gas condensate field in the Outer Moray Firth, 100km north of
St Fergus on the North-east coast of Scotland.
Kieron McFadyen, Technical Director for Shell Exploration & Production in Europe
said: "The £300 million Goldeneye project has commenced production safely, on
time and on budget, demonstrating world class project delivery. This is an
excellent example of Shell's ability to grow its integrated gas business.
"Goldeneye will provide around 3% of the gas for the UK, so will make a
significant contribution to securing energy for the UK in the future, as the
country becomes a net importer of gas. Plateau gas production is estimated to be
some 300 million standard cubic feet of gas and associated liquids a day."
UK Energy Minister Mike O'Brien said: "Goldeneye will help secure several
thousand jobs in Scotland where gas lands at St Fergus and Shell's Natural Gas
Liquids Plant in Mossmorran. This venture highlights the continued development
of the UK Continental Shelf - it is excellent news for the UK and confirms the
opportunities which remain in the basin."
This is only one of the solutions Shell has developed to secure the import of
energy supplies to the UK and the first time gas has been brought ashore from
the Outer Moray Firth area. Working with the co-venturers, Shell has employed
some innovative technical solutions to the challenging geological and
The Goldeneye field was initially regarded as economically marginal, mainly due
to the distance from existing infrastructure. However, Shell engineers came up
with an innovative solution of transferring gas and condensate at reservoir
pressure from an unmanned platform to the onshore processing Shell/Esso facility
at St Fergus. The pipeline is 105km in length, making it the longest tied back
full well stream pipeline in the UK Continental Shelf.
Tom Botts, CEO of Shell Exploration & Production in Europe and Managing Director
of Shell Expro at the time of the Goldeneye venture launch in 2002, said: I am
delighted to see gas production from a project I watched take shape from the
outset. The Goldeneye field was first discovered in 1996 and it took some clever
thinking to reach the final solutions. This is a clear demonstration of Shell's
world-class technical ability and of the value of developing long-life
integrated gas projects. We employ some of the best engineers in the world in
our centre of excellence in the North-east of Scotland, with skills and
expertise we aim to use in innovative solutions on a global scale."
18 October 2004
Notes to Editors:
Shell 49%; Esso 39%; Paladin Resources plc 7.5%; Centrica Energy 4.5%
This is the greatest UK water depth in which a jack-up rig has been used for
production drilling. At 120 metres/400 feet it is three times the depth of the
Southern North Sea.
At 105km the transport of the reservoir fluids in Full Well Stream Transfer to
shore is the longest in the UK Continental Shelf.
The offshore facility is a Normally Unattended Installation with no planned
production water discharge, utilising energy to drive the Full Well Stream
transfer to shore rather than compression - resulting in a reliable, cost
effective development solution, which minimises environmental impact.
Gas will be delivered to the National transmission System at Transco in St
Fergus while natural gas liquids and condensate will go to the Fife Natural Gas
Liquids Plant in Mossmorran through an existing pipeline. After further
processing various products, including condensate, propane and butane will be
available for entry into the European petrochemical and refinery markets.
The Goldeneye platform is located in the Shell operated UKCS Block 14/29a, 105
km from North-east Scotland, in the South Halibut basin area of the Outer Moray
Firth. The field straddles blocks 20/4b, 20/3b and 14/28b."
Paladin Resources plc Tel : 020 7024 4500
College Hill Tel: 020 7457 2020
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