The UK Government today granted BP and its partners approval to proceed with a £4.5 billion project in the North Sea, part of a £10 billion total investment that has signalled the North Sea hasn’t run out of resources just yet.
BP will invest around £4bn into the four projects, the highest level of annual investment the company has ever made into the UK North Sea. Shell, ConocoPhillips and Chevron are also involved in projects that BP expect to come on stream over the next five years.
UK Prime Minister David Cameron said: “I am delighted to give the go-ahead for this project; this investment is great news for Aberdeen and the country and provides a massive boost for jobs and growth. It shows the confidence that there is to invest in the North Sea – we have cutting edge technology, world class skills and expertise and a UK Government that is committed to do what we can to secure future investment.”
The Clair Ridge development, costing £4.5bn, will involve the construction and installation of two new, bridge-linked platforms, scheduled to be installed in 2015 with production expected to start in 2016. The new facilities are being designed for 40 years of production.
BP estimates Clair Ridge will have the capability to produce 640 million barrels of oil and will provide a hub for future expansion.