The UK Oil and Gas Authority has approved gas and oil production in the largest oilfield discovered in the last ten years in the North Sea. The oilfield is owned by Maersk Oil and is valued at about $111 billion. It is believed that the production of gas and oil during peak production periods from this oilfield will be able to meet around 5 per cent of the UK’s requirements.
Scotland Energy Minister Fergus Ewing stated that the oilfield will offer investment, supply chain and job opportunities. He said that the oilfield also had the capabilities to extend its production for several decades.
The new oilfield is located in the Culzean field and was discovered in 2006. Experts believe that it has reserves of 300 million barrels, and at peak production, the oilfield will have the ability to produce between 60,000 and 90,000 barrels a day.
When the oilfield starts operations, it will open its doors to 6,000 jobs in the UK along with 400 direct jobs. It is anticipated that the operation of the oilfield, which will commence in 2019, will stimulate economic growth in the country. The new development will create many opportunities for oil and gas contractors in the UK as it is expected to be in production for at least 13 years.
Former Chancellor George Osborne said that the new development shows that the North Sea cannot be written off as it is once again turning into an attractive proposition for oil and gas companies. He went on to add that the oil and gas industry in the UK has already created thousands of jobs throughout the country. The latest development, which has attracted an investment of £3 billion and is supported by the Government, will also provide several job opportunities for individuals and oil and gas contractors.