The Victory field is expected to produce up to 25,000 barrels of oil equivalent per day, or 150 million standard cubic feet per day of gas when it comes online in the middle of the decade, Shell said in a statement.
Shell fully owns the field, which is located around 47 kilometres (29 miles) north-west of the Shetland Islands.
Its gas will be processed onshore at the Shetland Gas Plant before being piped to the UK mainland to enter the National Grid at St Fergus.
Britain's regulator, the North Sea Transition Authority, said it had granted consent for the field's development.
