BP announces first oil in central North Sea

Oil major BP has launched production from the Kinnoull field in the central North Sea, which is expected to produce more than 50,000 barrels of oil a day.

90% of the project’s investment occurred in the UK, creating employment at its peak for over 1,000 people.

Production is now carried from the Kinnoull field to the Andrew platform via a 28-kilometre subsea pipeline bundle, the longest such system in the world.

It is expected to enable production in the Andrew field area, 230 kilometres east of Aberdeen, to be extended by a further decade.

UK energy minister Matthew Hancock said: “The Kinnoull project is a great example of the continued commitment shown by the government and the offshore industry to make the most of the North Sea’s remaining resources.

“Working together we are maximising the potential of our domestic oil and gas reserves, securing both jobs and energy supplies.”

Trevor Garlick, regional president for BP’s North Sea business, said: “Fifty years after BP was awarded its first licences in the North Sea, the successful start-up of Kinnoull demonstrates our continued commitment to maximising recovery from the basin.

“As we now look to continue our investments and meet the challenges of a toughening market environment, we also need to continue to improve the efficiency and competitiveness of our North Sea business.”

BP operates and has a 77.06% interest in Kinnoull, alongside co-venturer JX Nippon Exploration and Production (UK) with 22.94%. Andrew is operated by BP, with a 62.75% interest, with co-venturers JX Nippon owning 27.39% and Talisman-Sinopec holding 9.86%.

Shares were down 1.6% to 411p on Tuesday at 14:38.