Maersk Oil UK said yesterday it had received approval from the UK Government for its development plan for the Balloch oil field.
Balloch, in which Maersk has a 100% interest, was discovered in 2010 and is 140 miles north-east of Aberdeen.
Production will be through one well initially and tied back to the Global Producer III floating facility, which produces oil from the Dumbarton and Lochranza fields. The first well is expected to peak at about 8,000 barrels of oil per day with production starting in April, and a second well is being planned.
Reserves from the two wells are estimated to be 9million barrels of oil.
Maersk said total investment in the two Balloch wells was expected at about £150million, and potential for further development would be assessed based on the performance of the planned production well, combined with recent encouraging appraisal results.
Maersk Oil UK managing director Martin Rune Pedersen said: “We are delighted with this approval as our investment in the Balloch field is part of Maersk Oil’s ambitious long-term growth strategy in the UK.
“Following our acquisition of the remaining 30% equity in Dumbarton, Lochranza and Balloch in 2012 from Noble Energy, we have been able to fast-track the project, and maximise production through the Global Producer III, which is core to Maersk Oil’s overall production strategy.
“We have a strong portfolio of development and exploration projects, and are fully committed to bring these on stream in the next five-seven years.”
UK Energy Minister John Hayes said: “Balloch is an excellent example of a smaller field using existing infrastructure. This type of development will become increasingly important for maximising oil and gas recovery from the UK continental shelf and creating jobs in the supply chain.”