The head of industry trade body Oil & Gas UK has welcomed Maersk’s confirmation that its $4.5billion high pressure, high temperature Culzean field in the UK Central North Sea is to go ahead.
OGUK chief executive, Deirdre Michie, said: “Oil & Gas UK welcomes the development approval of the largest new field discovered in the UK North Sea in more than a decade.
“Maersk Oil’s Culzean field is expected to produce enough gas to meet 5% of total UK demand at peak production.
“This is positive news indeed, as according to figures from the Department for Energy, the country’s primary demand for oil and gas, critical for our transport and heating and powering our homes, will remain unchanged until 2030 at least.
“This investment by Maersk Oil and its co-venturers, in this technically demanding high pressure high temperature field, is very encouraging at this challenging time for the industry and reinforces the fact that that the UK Continental Shelf continues to have much to offer.”
The cash commitment secures Culzean’s future through 2032, supports 6,000 UK jobs and creates more than 400 direct jobs.
The funding injection comes as the Oil and Gas Authority officially sanctioned the development.
Chancellor of the Exchequer, George Osborne, said: “Today’s announcement sends a clear signal that the North Sea is open for business. Already the UK’s oil and gas industry supports hundreds of thousands of jobs across the country and this £3billion ($4.5billion) investment comes on the back of massive government support for the sector.”