A major investment in the UK’s North Sea oil industry
A major investment in the UK’s North Sea oil industry that will secure production for decades to come for troubled BP has been approved by the Government.
It means BP and its partners in the Clair Ridge field, west of the Shetlands, can proceed with the second phase of their development to install two bridge-linked platforms at a cost of 4.5bn.
It will take total investment in the field to 10bn, with BP contributing 4.5bn of that alongside Shell (LSE: RDSB.L – news) , ConocoPhillips (EUREX: COPF.EX – news) and Chevron (NYSE: CVX – news) .
BP says that when you combine its four North Sea projects, over half of the investment will be spent in the UK and they will create 3,000 UK oil and gas supply chain jobs and support a further 3,500.
Announcing the Government’s decision to approve the second phase, Prime Minister David Cameron said: “This… is great news for Aberdeen and the country and provides a massive boost for jobs and growth.”
There has been a renewed focus on North Sea oil for BP since the disastrous oil spill in the Gulf of Mexico in April last year and its failed bid to tap the Arctic with Russia’s state-owned Rosneft.
BP’s chief executive Bob Dudley said: “After some years of decline, we now see the potential to maintain our production from the North Sea at around 250,000 barrels of oil equivalent a day until 2030.”
BP says the wider Clair Ridge field has now become the UK’s largest hydrocarbon resource and it is planning to extend its operation in the south west of the site after a “significant” find in an appraisal well.
Earlier this year, BP and its partners announced plans for the 3bn redevelopment of the Schiehallion and Loyal fields, west of Shetland, and the 700m development of the Kinnoull field in the central North Sea.
Source: Sky News
