Economy

Shell gives go-ahead to third North Sea gas project in 2018

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Royal Dutch Shell said on Monday it will develop the Fram gas field in the North Sea, its third project approval in the ageing basin this year.

Shell's final investment decision (FID) on Fram follows the green light for the expansion of the Penguins field in January,

and the 50-50 joint venture Alligin field in the west of Shetlands area which is operated by BP.

The UK North Sea is one of the world's oldest offshore basins whose production started in the 1970s and peaked in the late 1990s. It has enjoyed a modest production revival in recent years thanks to a wave of new projects coming on stream.

Shell and other producers have used the collapse in oil prices since 2014 to reduce costs of projects thanks to lower rig rates, simpler designs and the use of technology.