BP North Sea finds ‘set to double oil production’

Two new oil and gas fields have been discovered in the North Sea; as a result production is expected to increase by 100 per cent. The news continues to bolster an increasingly optimistic outlook.

Three North Sea oil rigs at sunset
BP has announced the discovery of two new oil and gas fields in the North Sea, which should enable the company to double production within the next two years.

North Sea oil production

The company also believes the discoveries should mean that North Sea production will be able to continue beyond 2050.The discoveries of the Capercaillie field in the central North Sea, which contains light oil and gas condensate, and the Achmelvich field, west of Shetland, which contains oil only, were made last summer and BP is now evaluating the results amid reports that one of the fields is the largest ever found in the North Sea.BP said it believed the finds should enable production from the area to double to 200,000 barrels a day by 2020. The company BP has spent billions in recent years developing new fields while selling off mature assets on the UK Continental Shelf amid falling oil prices.Mark Thomas, BP North Sea regional president, said, “These are exciting times for BP in the North Sea as we lay the foundations of a refreshed and revitalised business that we expect to double production to 200,000 barrels a day by 2020 and keep producing beyond 2050. “We are hopeful that Capercaillie and Achmelvich may lead to further additions to our North Sea business, sitting alongside major developments such as Quad 204, which came on stream in 2017, Clair Ridge, due to come into production this year, and the non-operated Culzean field, expected to start up in 2019.”
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Oil and gas reaches a high

Oil and gas output is expected to reach an eight-year high in the UK North Sea this year, mainly because of production coming on stream from the Clair Ridge and Mariner fields off Shetland. The Herald in Scotland reported on Wednesday, “Interest in the west of Shetland area is surging among oil and gas firms with exploration well numbers set to reach the highest level since the price of crude oil plunge started. “It is considered strategically important region in keeping North Sea activity afloat and has already attracted interest from giants BP, Shell and Total as well as rising oil explorers Siccar Point Energy and Hurricane Energy. “The recent discovery of the giant Lancaster field by Hurricane Energy underlines the potential to make big finds in an area in which there has been relatively little drilling so far.“Private-equity backed Siccar Point Energy will also drill a well in the area while Ineos is targeting the Lyon prospect, which is estimated to contain more than 250 million barrels oil equivalent.”

UK oil and gas exploration

Deirdre Michie, Oil & Gas UK chief executive, commented, “BP’s exciting discovery marks a more positive start to 2018 for UK exploration. “Our competitive fiscal terms, and the strides we have made to bring our finding costs in line with our peers, make the UK Continental Shelf a very attractive basin for doing business.“While industry continues to build on its efficiency programme, Oil & Gas UK will continue to work closely with stakeholders to ensure no stone is left unturned in our efforts to maximise economic recovery from the basin.”
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