Dana Petroleum has confirmed it is to use a Sevan Marine-designed floating production vessel for its £1billion Western Isles development in the northern North Sea.
The Aberdeen-based oil firm has signed a technology licence agreement and a service agreement with Norwegian group Sevan.
The vessel is being built at the Cosco Nantong and Qidong Shipyards in China.
Dana has a 77% stake in the Western Isles project and Japanese exploration and production company Cieco holds the remaining 23%.
Malcolm Webb, chief executive of industry body Oil and Gas UK, said yesterday: “Projects like these will help to boost production and stem the decline we have seen in recent years, so helping the full economic benefit of our reserves, in terms of jobs and tax revenues, to be realised.
“Government recognition of the importance of our oil and gas production for the economy and Britain’s energy security and close engagement with the Treasury has resulted in a raft of new projects being announced on the UK continental shelf.
“However, exploration is still worryingly low and we need to do more to reverse the production decline.
“Oil and Gas UK is working keenly with the Department of Energy and Climate Change, through Pilot, to address these issues.”
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