The Department of Energy and Climate Change has approved Dana Petroleum's Western Isles project at an estimated cost of $1.6 billion to develop two oil fields, Harris and Barra, in the northern North Sea.
"I am delighted to announce the go-ahead for this project which will bring new jobs and create new opportunities for UK companies to compete for key parts of the work," said John Hayes, UK Minister of State for Energy and Climate Change, in a statement. "Dana Petroleum has demonstrated its commitment to the North Sea and in doing so is playing its part in helping to secure the UK's future energy needs."
The nine-well Western Isles development is expected to produce more than 40,000 barrels of oil equivalent when it comes online in 2015. Located roughly 99 miles east of the Shetlands and 7 miles west of the Tern field, the Harris and Barra fields are estimated to contain recoverable oil reserves of more than 45 million barrels.
"The Western Isles project is at the heart of our growth strategy," stated Dr. Marcus Richards, Dana's Group Chief Executive Officer. "Unlocking the potential of these new fields is a significant milestone as we aim to double our production to 100,000 barrels a day by 2016. We welcome the announcements by the Treasury this year to support oil and gas companies operating in the North Sea. This will help create a brighter future for the industry."
The Department of Energy and Climate Change also approved Dana as operator of the project, which is a joint venture between Dana with an equity share of 77 percent, and Japanese upstream exploration and production company Cieco, which holds the remaining equity.
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