The frontier west of Shetland region was given another boost yesterday after it emerged a multibillion-pound development could still be producing nearly 30 years from now.
Chevron said it expected its Rosebank field to still be producing in 2042 after applying for UK Government approval to push ahead with the project.
The US operator said Rosebank, 81 miles off Shetland, could hold up to 698million barrels of oil.
If even half of that figure was recovered, it would make it one of the UK’s largest oil and gas projects yet to be developed.
Chevron, which decided to go ahead with the project after a three-year exploration and appraisal programme, said it would develop Rosebank with a floating production vessel and 14 wells.
In an environmental statement submitted to the Department of Energy and Climate Change, the firm said it expected drilling to start in 2015, with first production three years later. The document also revealed peak production at Rosebank could hit nearly 100,000 barrels of oil per day in 2019, while peak daily gas output is expected to be 134million cubic feet in 2022.
Rosebank, which covers an area 13 miles long and three miles wide, is in water depths of up to 3,600ft.
In the environmental statement, Chevron said it would face some of the most extreme conditions in UK waters when developing Rosebank.
The project is reportedly worth about £4billion, and earlier this year Chevron agreed a £1.24billion deal with Hyundai Heavy Industries to build the production vessel for the field.
Chevron is leading the Rosebank development with a 40% stake in the field, while Statoil has 30%, OMV holds 20% and the remaining 10% is held by Dong Energy.
The companies are not the only operator planning multibillion-pound investment in the region.
BP has both a second phase of its Clair field, named Clair Ridge, on its portfolio, plus the redevelopment of its Schiehallion project at Quad 204. The two developments combined are worth £7.5billion.
Total is also gearing up to start production at its £2.5billion Laggan/Tormore project, which is due on stream next year.
Meanwhile projects like Chevron’s Rosebank will have “enormous implications” for Shetland’s economy, according to local MSP Tavish Scott.
He said the huge development highlighted the potential reserves lying west of Shetland and described Chevron’s prediction it would still be producing 30 years from now as “excellent news for the islands”.
The Liberal Democrat added: “The implications for onshore jobs alone, thanks to developments like this, are enormous.
“The oil industry is one of the very few bright spots in the UK economy at the moment. Both the Scottish and UK governments should be working their socks off to support an industry which will provide vital employment for generations of Scots.”
News that Rosebank could still be producing decades from now comes days after oil entrepreneur Sir Ian Wood was persuaded out of retirement to draw up a major new blueprint for the future of the oil and gas industry.
Sir Ian will lead a review into the UK’s recovery of oil and gas and how to extend the life of the sector. He is expected to report back to the UK Government with a series of recommendations early next year.
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