Latest news: BP oil investment

Major oil company BP plans to plough £700million into the Kinnoull reservoir project. 12/09/2011

Kinnoull is the largest of three reservoirs in the central North Sea. Being developed as part of the Andrew Area development project, it will produce 45 million barrels of oil equivalent.

The reservoir will be extended to reach an already existing platform and enable production to continue into 2020 and beyond.

‘The Kinnoull project is a further demonstration of BP’s vision to sustain a material and high-quality business in the North Sea region. It is also 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,’ said Trevor Garlick, regional president for BP’s Central North Sea business.

The new facility is scheduled to commence production in 2013.

The forecast for production will peak at 45,000 barrels per day and be exported to Teeside via existing pipeline systems.

‘I am pleased to see that BP is taking forward the development of the Kinnoull field. With around 90% of the development involving UK firms, this is a real 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,’ said Charles Hendry, minister of state for energy and climate change.