BP AND its partners Royal Dutch Shell, ConocoPhillips and Chevron won the government’s approval yesterday to push ahead with a £4.5bn investment to develop one of the largest North Sea oil fields.
The oil major said the second-phase development of the giant Clair field, west of the Shetland Islands, takes to £10bn the new projects it is involved with in the North Sea. BP’s share amounts to £4bn – its biggest annual investment to the UK North Sea.
“Although it began over forty years ago, the story of the North Sea oil industry has a long way yet to run,” Bob Dudley, BP’s chief executive, said yesterday.
“BP has produced some five billion barrels of oil and gas equivalent so far from the region and we believe we have the potential for over three billion more.”
The second phase for the Clair field means it will produce another 640m barrels out to 2050.
BP also announced the appraisal of an extension to the Clair field – South West Clair – extending reserve estimates for the greater field to seven billion barrels.
Earlier this year, BP and its partners also 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. The group is also working with RWE on the £550m development of the Devenick gas field.