BP (www.bp.com)is to invest in an upgrade of its oil and gas fields 150 miles east of Aberdeen, which are known collectively as the Eastern Trough Area Project (ETAP); this is expected to extend their life to 2030 and beyond. BP said that the decision to go ahead now was influenced by the new Investment Allowance — introduced in April to encourage firms to spend on North Sea assets.

BP has cut 300 jobs from its North Sea operations this year in response to the downturn in the price of oil. Trevor Garlick, the head of its North Sea business, said: “These are challenging times for the industry, and we are having to make hard choices. Nonetheless, we remain committed to improving the competitiveness of the North Sea and to maximising economic recovery from our fields. ETAP holds significant potential, and we are working to ensure its reliability, efficiency and long-term competitiveness.

“A few weeks ago, we welcomed the arrival of the Safe Caledonia Flotel into the ETAP area, launching the start of a major investment programme to renew and extend its field life. In parallel, we are drilling new wells on ETAP’s Machar and Marnock fields, replacing sub-sea infrastructure, and deploying new technologies to help maximise the fields’ recovery.

“BP is also investing heavily in developing the giant Clair Ridge field West of Shetland and revamping our Schiehallion asset. These will have relatively low operating costs.”

Deirdrie Michie, chief executive of the Oil & Gas UK industry body, welcomed the announcement, saying: “It is encouraging to see the continuing investment that BP is making in its North Sea assets and projects, to deliver a secure indigenous supply of energy for the UK. Given the harsh business environment that oil and gas companies currently face, with the oil price more than halved since this time last year, the industry as a whole is putting
a great deal of effort into improving the performance of its assets.”

The ETAP includes six fields operated by BP, which are linked to a central processing platform. It has been in production since 1998.