Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

BP investment decision signals ‘change in tack’ for oil major

Post Thumbnail

BP’s decision to push ahead with the development of the Alligin and Vorlich fields signals a change in tack from the energy giant, an analyst has said.

Kevin Swann, of energy consultancy Wood Mackenzie, said the projects were a departure from BP’s current mega-developments west of Shetland.

Alligin and Vorlich together contain 50million barrels of recoverable oil.

BP’s Quad 204 project, which came on stream last year, is targeting 450million barrels of oil, while Clair Ridge is expected to deliver 640million barrels.

Mr Swann, senior research analyst, North Sea, said it was good to see BP developing smaller fields, which he described as the lifeblood of the UK continental shelf.

He said: “BP committing to two new development projects in the UK is welcome news for the region. Hot on the heels of Shell sanctioning the Penguins re-development, this is further evidence that the majors are not finished in the UK yet.

“BP’s Vorlich and Alligin are both relatively small fields, which signals a change of tack from BP after its massive west of Shetland projects in recent years. But such large scale endeavours  are few and far between in the UK. Smaller fields continue to be the lifeblood of the shelf, so it is encouraging to see a major like BP getting involved.

“As well as more production for BP, these new developments also provide a boost to the nearby platforms they tie into, improving economics and allowing them to produce for longer.

“We always expected 2018 to be a big year for UK project sanctions and early signs are encouraging.  If the stars align, we could see as many as a dozen more by the end of the year.”

Recommended for you

More from Energy Voice

Latest Posts