BP said yesterday one of its ageing North Sea assets could produce two years’ worth of oil in 2012 alone.
The energy giant is due to suspend production at its Schiehallion field west of Shetland next year as part of a £3billion redevelopment programme, but said yesterday this year’s output was ahead of expectations.
The increased production will be a boost for Shetland Islands Council (SIC), as imports from Schiehallion account for 40% of tanker traffic at the authority’s Sullom Voe port.
SIC is facing a drop in revenue when the existing Schiehallion production vessel is taken out of service, but will benefit when BP restarts output in 2016.
BP said yesterday that before the decision was made to redevelop Schiehallion, it had expected 40 import tankers to go through the Sullom Voe terminal over 2012 and 2013.
It added 17 tankers had already been sent to Sullom Voe this year, and as there were no further planned shutdowns the field could still hit the target of 40 despite ceasing production early next year.
BP said the increased production was thanks to maintenance and upgrades carried out last year.
Andrea Manson, chairwoman of the Shetland Harbour Board, said extra tankers was “wonderful news”.
“Every tanker which comes into Sullom Voe is welcome, not just because of the oil but because of the other income it generates with berth and towing fees,” she said.
Ms Manson added the board had budgeted for Schiehallion production ending in February 2013 and was targeting other sectors to help fill the gap.
BP’s redevelopment plan for Schiehallion is expected to allow recovery of an additional 450million barrels of oil and extend production until 2035. Along with the nearby Loyal field, the development has already produced 400million barrels since operations started in 1998.
Shetland negotiated a levy on oil coming through Sullom Voe when the energy industry flourished on the islands in the 1970s. The money now goes into three separate funds – the Reserve Fund, the Shetland Charitable Trust and the SIC Pension Fund – which are understood to be worth a combined £650million.