£4.5bn North Sea oilfield will create thousands of jobs
THOUSANDS of jobs will be created after oil giant BP got the green light for a £4.5billion North Sea drilling project.
The Westminster Government yesterday granted approval for the company to begin work in the Clair field, which is west of the Shetland Islands.
Prime Minister David Cameron said in Aberdeen yesterday that the project, which is expected to create 3,000 oil and gas supply jobs, would provide “a massive boost for jobs and growth”.
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The Clair Ridge development, which also involves Shell, ConocoPhillips and Chevron, will involve the construction of two new platforms, which will be installed in 2015, and are expected to start production in 2016.
The facility should be able to produce 640 million barrels of oil over a period of 40 years, with peak output reaching up to 120,000 barrels a day.
Although it began more than 40 years ago, the story of the North Sea oil industry has a long way yet to run
Mr Cameron said: “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.”
BP chief executive Bob Dudley said: “Although it began more than 40 years ago, the story of the North Sea oil industry has a long way yet to run.
“BP has produced some five billion barrels of oil and gas equivalent so far from the region, and we believe we have the potential for more than three billion more.”
The announcement was welcomed by First Minister Alex Salmond, although he hit out at the UK Government’s earlier decision to raise the supplementary tax on North Sea oil production from 20 per cent to 32 per cent, to fund the cut in fuel duty.
He said: “This massive new investment by BP and its partners is extremely welcome and confirms that the offshore industry has a key role to play in generating jobs, skills and revenue for decades to come.
“With up to 40 per cent of oil and gas reserves still to be extracted, and well over half of the revenues still to be generated, the UK Government needs to give more certainty to the industry and restore confidence that has been badly dented by the Treasury’s conduct this year.”
But environmental group Greenpeace fear “irreparable damage to the environment”.
The announcement comes just days after industry body Oil and Gas UK warned that the UK could exhaust its oil and gas reserves in just 17 years if production continues at its current rate.
