Scotland’s oil and gas sector ‘alive and kicking’

The finds were made in the central North Sea and west of Shetland
The finds were made in the central North Sea and west of Shetland
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Energy giant BP has said it expects to double production in the North Sea by 2020 as it announced two new oil and gas discoveries in the area.

The finds were made in the central North Sea and west of Shetland after wells were drilled last year.

Tests have been carried out to discover volumes of gas and oil present, and the data is “under evaluation”.

The company said “evaluation and interpretation” of the well results was ongoing to “assess future options”.

READ MORE: How much oil is left in the North Sea?

Options are expected to be considered for a possible tie-back development to existing infrastructure.

BP North Sea regional president Mark Thomas said: “These are exciting times for BP in the North Sea as we lay the foundations of a refreshed and revitalised business that we expect to double production to 200,000 barrels a day by 2020 and keep producing beyond 2050.

“We are hopeful that Capercaillie and Achmelvich may lead to further additions to our North Sea business.”

The SNP said despite the positive news, the oil and gas sector remains threatened by the impact of ‘a Tory hard Brexit’.

Aberdeenshire East MSP Gillian Martin said: “This is excellent news for jobs and the economy across the North East of Scotland – and shows yet again how strong and resilient the oil and gas sector is.

“Despite the doom-mongers’ claims, the sector is well and truly alive and kicking – and with BP set to double production by 2020, there is plenty to be positive about in the years ahead.

“However, the threat to the industry from the Tories’ hard Brexit plans can’t be ignored, with industry leaders warning that it could cost them £500 million a year, setting back all the progress made in recent months and years in bringing jobs back to the sector, the North East and Northern Isles.

“And the revenue from the industry’s rebound must be reinvested to support jobs and to future-proof the sector from potential downturns – yet the Chancellor’s recent budget offered none of these assurances.”

READ MORE: Comment: Cautious optimism for oil and gas sector in 2018