AkerBP and Faroe Petroleum have agreed to invest £160million on a 10-year extension of the Tambar field in the Norwegian North Sea.
AkerBP said two new wells would be drilled on the field by the Maersk Interceptor in the fourth quarter of 2017.
Production from the new wells is scheduled to start in the first half of 2018.
The project partners expect the new wells to yield 4,000-6,000 barrels a day over several years.
The breakeven oil price for the project is below $20.
AkerBP holds the operatorship and 55% of Tambar, while Faroe is on 45%.
Aker BP was established in September following the merger of Det norske oljeselskap and BP Norge.