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Wilson Welcomes £650m Offshore Investment
| Date: | 17 Oct 2001 | | Details: | Brian Wilson, Energy Minister, has welcomed signs of increased activity in the UK oil sector, including today's announcement by BP of a £650 million proposed development. In particular, he said there was now a strong response to the Government's fallow fields initiative with ten proposals going forward and another seven in the pipeline.
Mr Wilson chaired a meeting of PILOT - the joint Industry and Government forum for the offshore sector - where emerging news of activity levels was revealed.
BP and its co-venturers are seeking DTI approval to develop phase 1 of the Clair oil and gas field at a cost of around £650 million.
Welcoming the submission of the development plan Mr Wilson said:
"It is vital for the future of the UK that we make the most of our natural resources and I am delighted that BP has brought development of Clair closer than ever before. The potential West of Shetland has been known for some time and further development of the province is eagerly awaited."
"Clair, once it proceeds to the implementation stage, will make a significant contribution to achieving PILOT's investment targets. It will also boost the UK's offshore supply chain."
"DTI officials have been fully engaged in the ongoing efforts by UK fabrication yards and other suppliers to demonstrate they can compete globally. I expect them to prove that competitiveness and to win a significant proportion of available work"
Today's announcement is further evidence of continued activity on the UKCS. A number of DTI and PILOT initiatives are beginning to yield favourable results with a higher number of projects coming forward for development. Since last June's Fallow Review, DTI has approved four developments and received a further six Plans for approval. DTI is also aware of plans for seven more fallow discoveries that could be submitted early next year.
The Progressing Partnership Workgroup (PPWG) presented interim reports to PILOT today. All parties involved demonstrated their commitment to bringing about the kind of cultural and behavioural changes required to deliver the PILOT targets.
PPWG, in conjunction with PILOT's Stimulating Exploration workgroup, is working towards a systematic reduction of fallow blocks, ensuring that licences are in the hands of operators willing to invest in them.
Another joint initiative on brownfield development is looking to stimulate production of an estimated 3 billion barrels of additional oil from mature fields.
Mr Wilson commented on these initiatives:
"The work of these Groups is vital to the future success of the UKCS. It is imperative that we make the most of our natural resources and I am delighted that progress is being made but we must not be complacent. We must continue the good work if we are to meet the challenging targets set by PILOT." | | Contact: | Trisha O'Reilly, PILOT Communications
Tel: 020 7802 2422
Email: toreilly@ukooa.co.uk |
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For all press enquiries please contact:
Trisha O'Reilly at UKOOA Tel: 0207 802 2422 Email: toreilly@ukooa.co.uk
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