This item was published during the term of a previous administration that ended in April 2007
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Nicol Stephen Welcomes Major Investments In Scotland's Oil And Gas Industry
07/09/2000
Deputy Minister for Enterprise and Lifelong Learning, Nicol Stephen today welcomed a £620 million boost for Scotland's oil and gas sector.
BP Chief Executive Sir John Browne today announced that it will award within the next few days a contract for engineering design work for its Claire field. Once completed it is expected this work will lead to the construction of £515 million production facilities for the west of Shetland field.
The company also announced the go ahead for the £350 million Magnus enhanced oil recovery project, the potential for a £480 million gas development scheme in the Bruce/Harding area and a further £2.75 billion to be invested in the North Sea over the next four years.
The BP contract follows Shell's announcement earlier this week that it was to increase by 50 per cent its capital expenditure on exploration in the North Sea.
At a lunch given by BP in Aberdeen to celebrate 25 years production from the Forties oil field, Nicol Stephen said:
"Today's announcement by BP that it is progressing the development of the Claire field west of Shetland is extremely welcome news. This proves that the UK Continental Shelf still has a great deal to offer the international oil and gas industry.
"The oil and gas sector is a major contributor to the economies of Scotland and the North East. BP's announcement today and Shell's major expansion plans revealed earlier this week confirms that the energy industry will play a vital role in the area for decades to come.
"New technologies in exploration and extraction are making previously marginal prospects economically viable. BP's £2.75 billion commitment to growth in the North Sea is excellent news while Shell's annual increase in North Sea investment to £830 million will not only open up new production but also allow the company to carry out further exploration.
"The Scottish Executive actively supports the UK Government's work with the industry to maximise oil and gas production. We are keen to see the expertise present in Scotland developed to provide a sustainable future for the industry and its employees.
"There are clearly great challenges to be met, especially on the Atlantic Margin. The industry faces real problems attracting skilled young people to work offshore. That is why the scale of the commitment being shown by companies like BP and Shell is so significant. These new investments send out a very powerful message. We need to emphasise - especially to young people - that the oil and gas industry has a long and exciting future in Scotland and the North East.
BACKGROUND
1. Mr Stephen was a guest at a BP lunch in Aberdeen on 7 September to celebrate 25 years of production from the Forties field.
2. Sir John Browne announced at the lunch that BP:-
- will within the next few days be awarding the preliminary engineering design contract for its Claire field west of Shetland. It is expected that this work, once completed, will lead to the award next year of a contract for the required production facilities; the entire development will be worth £620 million.
- will go ahead with the £350 million Magnus enhanced oil recovery project.
- has launched a website to market its high capacity fibre optic links to North Sea platforms, and a potential project to deliver large amounts of electricity from onshore power stations to its offshore facilities, replacing old generation capacity on the rigs, and reducing carbon emissions.
News Release: SE2397/2000
7 Sep 2000