Oil giant Shell has announced plans to build its first manned installation in the North Sea in almost 30 years.

The floating production vessel will be capable of producing 45,000 barrels of oil per day from the Penguins field, which lies 150 miles north of Shetland.

Shell's announcement on Monday was welcomed by the Scottish Government.

"This significant investment is further evidence of rising confidence in the future of the region and it will offer a significant boost to communities across the north east of Scotland," energy minister Paul Wheelhouse said.

About 70 people will be employed aboard the floating production, storage and offloading vessel (FPSO) from the early 2020s.

It will be built by US engineering firm Fluor and the work is expected to support up to 400 jobs, although it is unclear whether any will be in Scotland.

Shell is believed to have cut about 1000 jobs from its Scottish and North Sea operations since 2016.

The company's upstream director, Andy Brown, said: "Penguins demonstrates the importance of Shell's North Sea assets to the company's upstream portfolio.

"It is another example of how we are unlocking development opportunities, with lower costs, in support of Shell's transformation into a world class investment case."

The Penguins field was first developed in 2002 and is a joint venture between Shell and ExxonMobil.

The price of Brent crude oil has risen to almost $70 a barrel following a crash which saw it plunge from $110 to about $30. Shell said its break-even price is now around $40.

Industry body Oil and Gas UK echoed the Scottish Government's comments.

Chief executive Deirdre Michie said: "A global leader like Shell making a commitment on this scale demonstrates the investment potential the UK Continental Shelf still holds.

"It also shows the importance of the efficiency improvements our industry has delivered which have helped make redevelopment projects like this commercially attractive."

Around 150,000 oil and gas-related jobs have been lost in the UK since 2014 as a result of companies like Shell, BP and Wood Group cutting costs and scaling back major projects.

WWF Scotland, which recently called for the UK to end its reliance on oil and focus on renewables, described Shell's plans as "concerning".

Acting director Dr Sam Gardner said: "At a time when we need to move away from fossil fuels and increase investment in clean renewables, it's concerning to learn that Shell has made the decision to redevelop the Penguins field.

"Scotland and the UK should be showing the same leadership as demonstrated by President Macron of France's commitment to end future oil and gas exploration.

"We understand our economy will rely on fossil fuels for some time to come, but we must now see a clear vision to secure a just transition to a zero carbon future."