Spending on the giant West of Shetland oil project has broken through the £1billion mark since 2012, it has emerged.
The latest contract for the £3billion Schiehallion and Loyal field redevelopment, west of Shetland, has seen Leeds firm OneSubsea pick up a £65million contract to manufacture subsea trees for the fields.
The giant Quad 204 project, which is being developed by Shell, BP, OMV and Statoil, will construct a new floating production, storage and offloading unit to replace the existing Shiehallion FPSO, and see a major overhaul of the subsea infrastructure.
More than half the contracts issued for the project since 2012 have gone to companies in the North and North East of Scotland – among them a £500m deal with Technip and a £70million with Aker.
The Schiehallion and Loyal fields have already produced around 400million barrels of oil since production 1998, but BP has estimated the pair still hold a further 450million and it plans to continue production beyond 2035.
The new deal with OneSubSea will see it manufacture 11 trees for the Schiehallion redevelopment.
“The UK-based subsea engineering industry offers great expertise and capability and is fully engaged in developing highly-advanced equipment that will ensure we maximise recovery from this field until 2035 and beyond,” said Trevor Garlick, BP’s Regional President for the North Sea.
“It is great to see more than 30 companies from all parts of the UK working together to contribute towards this important offshore project.”
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