UK energy major BP has re-affirmed its commitment to the west of Shetland oil province.
The Clair Ridge development (phase two of the Clair oil field) and the project to secure the long term future of Schiehallion (Q204) will go ahead as of 2015, with crucial investment decisions being taken in 2011 and 2012.
The commitment will help to secure the long term future of the Sullom Voe oil terminal, which provides hundreds of jobs to the local community.
A spokesman for BP asserts that the life of Schiehallion could extend beyond 2035, while the Clair Ridge development had a 40 year life design.
Phase two of the Clair development, with an estimated production of 120,000 barrels a day until at least 2055, would be significant larger than the present operation.
Phase one started production in March 2005 when the first oil was pumped into Sullom Voe via a large new pipeline. Further work on Schiehallion, 110 miles to the west of Shetland, will open up between 150 million and 250 million barrels of oil.
We are looking at different design options, including a brand new floating vessel. If we were to sustain oil production at Schiehallion in the long term we would have to do something differently towards what we currently have, BP says.
The estimated capital cost will be $6 billion gross (4.39 billion).