ENERGY giant BP yesterday announced the start of what it said would be its largest period of investment in the UK North Sea after getting the go-ahead for its Clair Ridge project.
The £4.5billion scheme, with partners ConocoPhillips, Chevron and Shell, will see the life of the west of Shetland Clair field extended beyond 2050.
BP also announced it had drilled a successful appraisal well on an extension to the Clair field called South West Clair.
This had encountered “a significant new hydrocarbon column” in an overlying reservoir, confirming the overall Clair field as the UK’s largest hydrocarbon resource with more than 7billion barrels of oil equivalent initially in place.
In addition, the firm said its £550million central North Sea Devenick gas field project had reached a significant milestone, with a 600-tonne module built in the UK being lifted on to Marathon’s East Brae platform.
Making the announcements at BP’s Aberdeen headquarters yesterday, the firm’s global chief executive, Bob Dudley, said it was a “significant day in the history of the North Sea”.
“Over the next few years we will be bringing on stream four new UK field developments, more than we have ever done over a comparable time period,” he said.
“These projects represent almost £10billion of new investment into the UK Continental Shelf by BP and its partners.
“That, of course, is in addition to the ongoing £1.5billion we invest annually to operate and maximise recovery from our existing fields and to maintain our platforms, plants and pipelines.”
The four field developments are Clair Ridge, the Devenick gas development, the £3billion redevelopment of the west of Shetland Schiehallion and Loyal fields announced earlier this year and the £700million development of the Kinnoull field in the central North Sea, announced last month.
BP said more than half of the total investment in the projects was expected to be spent in the UK, including 500 tonnes of subsea structures going out to tender for Clair Ridge next year and more than 60% of the topsides equipment.
However, the jacket and platform topsides for the project are being built in Norway and Korea respectively.
Clair Ridge, costing about £4.5billion alone, is to be developed in partnership with Shell, ConocoPhillips and Chevron. It is the second phase of development of the Clair field and will include two new bridge-linked platforms. It is due to come on stream in 2016, have peak production of 120,000 barrels of oil per day and operate until at least 2050.
Mr Dudley said: “There is potential for further exploration, which will be in deeper waters. I think we will continue to explore and extend the life of the North Sea.”
Clair is owned 28.5% by BP companies, 24% by Conoco-Phillips, 19.4% by Chevron and 27.8% by Shell companies.
Devenick is 88.7% owned by BP and 11.3% owned by RWE Dea UK.
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