BP’s focus on big fields is fuelled by £100m North Sea investment

OIL giant BP is investing a further £100 million in the North Sea as it continues to increase its focus on large fields where it sees significant growth potential.

Under a deal struck with French energy group Total, BP will increase its interest in two fields in the Eastern Trough Area Project (ETAP).

The agreement means BP will add to its existing stakes in the Mungo and Machar fields as well as in a central processing platform.

The move is part of BP’s strategy to rebalance its huge portfolio and increase its investment in fields which have long term growth potential.

ETAP is an area in the central North Sea which is 21.7 miles wide and comprises of nine different fields.

Under the deal, which is expected to be finalised later this year, BP will increase its stake in the Mungo field by 12 per cent to 82 per cent and it will become the outright owner of the Machar field. The company will also increase its share of a central processing facility by 3 per cent to 57 per cent.

A spokesman for Total in Aberdeen said : “This is part of a wider divestment programme we are undergoing of small, non-operated North Sea assets, which between them have estimated reserves of about 22 million barrels of oil equivalent.

“This is because, at a time when we are developing a third production hub centred on Laggan-Tormore 125km north-west of the Shetland Islands and moving forward on several other fronts, we want to focus on our operated assets and developments.”

BP’s strategy to concentrate on the bigger fields has led to a number of investments and sell-offs over the past 12 months.

Last year it announced plans for the £3 billion redevelopment of its Schiehallion oil field in the Atlantic frontier, west of Shetland, in what was seen as a major boost for the UK’s offshore industry.