BP, the British oil giant is going ahead with an investment project located in the Shetland Islands. The US$500 million investment is project that would help renew interest in the North Sea oil industry.
While North Sea oil output has declined since 2000 as well as tax impositions in 2011 had many projecting a not so bright future ahead. This year though, a forecast by Oil & Gas UK would indicate an increase in production for 2014 with renewed investment interest as well as government support for the industry.
The investment is a precursor to a larger project located at the Clair field and coincided with government efforts to increase investor interest in the oil and gas sector. The plan is to drive appraisal wells in the area off the west coast of the Shetland Islands north of Scotland to determine if there is oil deposits worth developing.
According to BP's North Sea regional president Trevor Garlick, "If successful, the appraisal program could pave the way for a third phase of development at Clair - this is now a real possibility."
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