BP Makes New North Sea Discovery

BP has made a new discovery in Block 16/28 of the Central North Sea close to the Andrew Field, which is located approximately 230 kilometers northeast of Aberdeen. The discovery, known as "Farragon", is estimated to contain recoverable reserves of around 30 million barrels of oil.

It was made by Diamond Offshore's semisub, Ocean Nomad, under a farm-in arrangement whereby Eni U.K. Limited and EnCana (U.K.) Limited financed the well which was drilled under the management supervision of Eni U.K. Limited.

Tim Summers, Business Unit Leader for BP's Mature Business in the North Sea said: ""Farragon" is good news for the offshore industry, as exciting discoveries like these, though not large by global standards, are key to maintaining the vitality of the U.K. sector.

Such discoveries, along with continuing investment in brownfield development, will make best use of the existing offshore infrastructure and will help extend the life of the North Sea."

Stephen Timms, Minister for Energy, said: "This is very encouraging news for the industry. It confirms there are still significant opportunities for investment in the North Sea. This arrangement between BP, Eni and EnCana demonstrates the willingness to innovate and collaborate to stimulate activity".

BP as field operator, together with co-venturers, is now evaluating the discovery and potential for development.