A deal for Talisman Energy (UK) to provide transport and processing services to the Golden Eagle Development through its Flotta oil pipeline and tanking terminal was hailed yesterday as great news for Orkney.
The £2.2billion Golden Eagle project is expected to produce about 140million barrels of oil equivalent over 18 years, with first oil expected in late 2014.
Around 10% of the UK’s oil output comes ashore at the Flotta terminal in Orkney before being pumped into tankers and shipped around the globe.
Talisman said its Golden Eagle deal was the most significant piece of business Flotta had seen since it took over operatorship of the terminal.
Output from Golden Eagle, operated by Nexen, is expected to double the volume shipped.
Nexen would not reveal how much the new contract was worth but Roy Buchan, vice-president for Talisman’s northern business area said it represented a significant boost to the Flotta terminal.
Orkney Islands Council development and infrastructure committee chairman James Stockan said: “It is great news for Orkney”, while MSP Liam McArthur said: “The Flotta oil terminal is an important source of highly skilled jobs in the constituency but it also has a significant impact on the wider economy.”