Oil groups BP (LON:BP.), Shell (LON:RDSA), ConocoPhillips and Chevron have received UK government approval to proceed with the £4.5 billion Clair Ridge project, the second phase of development of the giant Clair field, west of the Shetland Islands. The green-light came as BP outlined its plans to maintain its own daily North Sea production levels at 200,000-250,000 barrels of oil equivalent a day until 2030 by pumping billions of pounds into the region.

Together with various partners, BP is planning to invest £10 billion on North Sea development over the next five years, with four flagship projects and a series of smaller developments. Among those projects is the £550 million development of the Devenick gas field by RWE and BP, which recently passed a significant milestone when its 600 tonne module was successfully lifted onto Marathon Oil’s East Brae platform. Once it comes on stream in 2012 it is expected to supply up to three percent of the UK’s gas needs. Earlier this year, BP and its partners announced plans for the £3 billion redevelopment of the Schiehallion and Loyal fields, west of Shetland, and the £700 million development of the Kinnoull field in the central North Sea.

BP’s share of the total investment in the four projects will be around £4 billion – representing the highest level of annual investment its has ever made into the UK North Sea. Over half of the total investment in the projects is expected to be spent in the UK.

Bob Dudley, BP’s chief executive, said: “Although it began over forty years ago, the story of the North Sea oil industry has a long way yet to run. 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. After some years of decline, we now see the potential to maintain our production from the North Sea at around 200,000-250,000 barrels of oil equivalent a day until 2030. And we are working on projects that will take production from some of our largest fields out towards 2050.”

The four BP-operated North Sea projects are part of a wave of new major oil and gas projects around the world that BP expects to come on stream over the next five years. Dudley said the efficient management of giant fields such…

Unlock the rest of this article with a 14 day trial

Unlock with Email
Unlock with Google

Already have an account?
Login here