Suncor Energy UK has signalled its intent to drill an exploration well on the Niobe prospect about 25 miles south-east of the Caithness coastline.
The Canadian-owned company has applied for Department of Energy and Climate Change consent for the project, which is expected to start in the second or third quarter of next year using a jack-up drilling rig.
Aberdeen-based Suncor Energy UK is operator for Niobe, alongside partners Norwegian Energy Company UK and Trap Oil.
The prospect, which is located in the Inner Moray Firth, east of the Beatrice Field, is estimated to hold more than 50million barrels of oil equivalent.
Suncor did not respond when asked for more details of its plans for Niobe, but a public notice in the Press and Journal said: “The proposed acquisition well is being drilled to fully evaluate the Niobe prospect for hydrocarbon-bearing potential”.
It follows hot on the heels of oil firm EnQuest taking a key step towards developing two UK North Sea fields.
EnQuest says development infrastructure for the Scolty and Crathes fields will produce up to 20,000 barrels of oil equivalent per day and have a design life of 15 years.
Scolty and Crathes are about 83 miles from St Fergus, Near Peterhead, in the central UK North Sea.
Potential new developments, however small, are a welcome boost for the UK oil and gas industry at a critical time.
Tumbling oil prices, declining output, spiralling costs, decommissioning issues and uncertainty over the tax environment are all causing anxiety in the sector.
Meanwhile, Premier Oil said yesterday that production from the trouble-hit Huntington field, in which it has a 40% stake, is expected to resume this weekend – ahead of schedule – following the completion of planned maintenance work.
Huntington has been plagued by shutdowns.
Recommended for you
