BP will create 1,000 jobs as the North Sea enjoys a boom year

OIL giant BP yesterday announced plans to create more than 1,000 jobs from Caithness to Tyneside through a £700 million investment in a new North Sea oilfield.

In a second boost to Britain’s oil and gas industry, Chevron was also granted the go-ahead to drill the Aberlour exploration well in the Atlantic frontier – the company’s third deep-water exploration well west of Shetland.

The two announcements were made by energy minister Charles Hendry during his visit to the opening day of Offshore Europe, the industry’s biennial showcase in Aberdeen.

Mr Hendry said: “Since we started exploring and producing in UK waters, we have been at the leading edge of a worldwide industry. And we still are. This year is shaping up to be our best year for new developments in at least a decade.”

BP is planning to invest a total of £700m in the development of the Kinnoull Field, 140 miles north-east of Aberdeen, in a project that will also extend the life of the nearby Andrew platform by about ten years.

The development of the subsea structures for the field will lead to the creation of more than 1,000 jobs in oil service companies in Wick, Aberdeen, Invergordon and in England.

Mr Hendry said: “I am pleased to see that BP is taking forward the development of the Kinnoull field. With about 90 per cent of the development involving UK firms, this is a really big win for our domestic supply chain, and shows that the thriving North Sea oil and gas sector continues to deliver economic benefit.

“I hope major global players continue to harness the expertise of UK companies as new developments come forward.”

Mr Hendry said he had also given consent for Chevron’s deep-water exploration well in the Aberlour field, north-west of Shetland, which will use the hi-tech drilling ship Stena Carron.

A spokesman for BP said: “Kinnoull is the largest of three reservoirs that are being developed as part of the Andrew Area developments project, and contains 45 million barrels of oil equivalent. The reservoir will be connected to BP’s Andrew platform and enable production to be extended to 2020 and beyond.”

He added: “Production from Kinnoull is forecast to peak at 45,000 barrels per day and will be exported via the existing Forties pipeline system to Kinneil and the CATS pipeline system to Teesside.”

Trevor Garlick, regional president for BP’s North Sea business, said: “The Kinnoull project is a showcase for the outstanding subsea expertise that exists within the UK. At its peak the project will create employment for over 1,000 people in the UK.”

Meanwhile, EIC, the leading trade association for UK companies that supply goods and services to the energy industries worldwide, published a new report at Offshore Europe revealing that projects with a total investment value of $178 billion are being proposed or are under development in the UK and Norwegian areas of the North Sea.

A spokesman said: “The report shows the UK and Norway have 168 and 117 offshore projects respectively. Key established projects include the Mariner and Bressay heavy oilfields off Shetland, and the Schiehallion and Loyal fields .”