Oil major BP said oil from its Schiehallion field in the UKCS will bypass the Sullom Voe Terminal (SVT) when it comes on stream again next year.
The company, which also announced its third quarter results today, said initial production would head to Roterrdam citing technical reasons for the decision.
Now it has been confirmed there will be no return to the island in the longer term.
However while oil will go straight to Rotterdam, gas will still be exported via SVT.
A BP spokesman said: “For technical reasons, following Quad 204 start-up, expected end 2016, initial oil production throughout 2017 will need to go to Rotterdam for processing.
“The Schiehallion partners have now informed the owners of Sullom Voe Terminal of the decision not to return to SVT after the initial off-spec period ,2018 onwards.
“The decision has been taken to maximise economic recovery from the Schiehallion and Loyal fields through enabling lower production costs over the long term. Gas from Schiehallion will
continue to be exported via the Sullom Voe Terminal.”
Schiehallion is expected to resume production next year.
It is understood when BP originally said oil would no longer go through the SVT, it was because first oil would contain methanol rich fluids.
The redevelopment of Schiehallion is part of BP’s bid to maximise oil recovery in the region.
BP and its partners announced their intention to go ahead with £3billion plans for redeveloping the fields, extending production to 2035 and possibly beyond, nearly four years ago.
Quad204 is targeting an estimated 450million barrels of oil.
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