Fifty years since acquiring its first North Sea license, BP is preparing to start a £700million ($1.1billion) project in the region that’s expected to produce oil and gas into the next decade.
The second-largest British oil producer will start output from the Kinnoull field this month, chief executive Bob Dudley said at an event in London yesterday.
Output from Kinnoull is forecast to peak at 45,000 barrels a day and will be exported via the Forties pipeline to the Kinneil processing plant and through the CATS system to Teesside, according to a company spokesperson. It’s one of three reservoirs being developed as part of the Andrew area rejuvenation program. The reservoir holds 45 million barrels of oil equivalent, the company spokesperson added.
BP has a 77.06% stake in the project. Eni SpA holds 16.67% and JX Nippon Oil & Energy has the rest.
The startup will be BP’s sixth this year. It plans to start production at the Sunrise oil-sands project in Canada later this year.
The company’s shares declined along with crude oil prices, falling 1.2% to 430.05 pence at 1.13 pm in London trading. Brent crude dropped 0.9% to $89.28 a barrel.
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