Operations have resumed at the Pierce feild in the UK Central North Sea following a major upgrade that has brought gas production on stream alongside the oil that has been extracted from the site since 1999.

Peak production at the field is expected to reach 30,000 barrels of oil equivalent per day, which is more than twice that prior to redevelopment. The majority of this will be gas.

Pierce is a joint venture between industry major Shell, which owns 92.5 per cent of the venture, and Israeli-backed Ithaca Energy which owns the rest. Ithaca has interests in a number of other North Sea assets, including the controversial Cambo oilfield west of Shetland.

The Haewene Brim floating production, storage and offloading (FPSO) vessel that is used to produce hydrocarbons at Pierce stopped production in October 2021 and spent six months in dry dock to allow for the necessary modifications for gas production. Gas at the site was previously re-injected into the reservoir.

READ MORE: Cambo oil giant Ithaca hits out at windfall tax

A new subsea gas export line was also installed as part of the upgrades. This connects to the Segal pipeline system, which brings gas ashore at St Fergus, north of Aberdeen.

"We are delighted that operations have resumed at the Pierce field, with the redevelopment project highlighting Ithaca Energy's commitment to invest in the UK North Sea at a time where additional supply is critical to the UK's Energy Security Strategy," chief executive Alan Bruce said.

Elsewhere in the offshore sector, UK-based Hurricane Energy has unveiled unaudited revenues of £31.7 million for the first quarter of this year as it awaits completion of a £250m takeover offer from Prax Exploration and Production.

Hurricane, which has a substantial presence in Aberdeen, said it averaged production rates of 7,311 barrels of oil per day at an average realised price of $78.5 per barrel of crude. Net free cash as of the end of March stood at £106.4m.

READ MORE: West of Shetland oil and gas company agrees £250 million takeover

The trading update came ahead of a shareholder event in which management fielded questions questions from shareholders about the proposed sale to Prax, a British conglomerate of refining, storage, distribution, and sales operations in the oil sector.

Hurricane has a 100% interest in the Lancaster field West of Shetland, which it discovered in 2009 and brought into production in 2019.

Under the terms of the deal, Hurricane shareholders will receive 4.15p for each share held in the company, which includes a dividend of 3.32p plus a cash consideration of 0.83p per share.

Furthermore, Hurricane shareholders will receive a supplementary dividend of up to 1.87p, as well as a deferred consideration unit that could deliver up to 6.48p.

READ MORE: Boss of North Sea firm IOG quits after production setbacks

"We remain on target, subject to the various conditions, for the completion of the sales process by June 2023,” chief executive Antony Maris said yesterday.

“With c. 450,000 barrels now available in the FPSO for the lifting currently scheduled by the end of April, we are confident that, under the terms of the offer from Prax, the full value of the supplementary dividend will also be payable to shareholders, either via the supplementary dividend or via the DCUs.

“This is great news for shareholders as we continue the process of derisking the offer from Prax, and we look forward to the opportunity to further explain the merits of the offer to all shareholders at the upcoming meeting."

Yesterday's news from IOG was far more downbeat as the North Sea firm reported further setbacks, this time with its Blythe-2 well drilling programme.

The company reported pressure issues and an influx of non-commercial quantities of gas from a reservoir which it said is not the well’s target, which remains isolated and separate. However,  however, the newly-encountered well issues “look likely" to delay further progress by about four weeks.