A Scottish oil firm based in Aberdeen is to develop two new oil fields in the North Sea, following the Treasury’s commitment to support the industry.
Dana Petroleum says it intends to develop nine already identified wells in the Barra and Harris fields. The development will cost £1bn, with an estimated 45 million oil barrels recoverable.
Talking about the move, Dr Marcus Richards, chief executive for the firm said:
“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.”
It is expected that the production will commence in 2015.
The oil and gas industry is seeing considerable strength at a time when other sectors are struggling, with the Treasury saying the industry supports 350,000 jobs.
Such is its importance, a number of tax incentives will be introduced to promote investment and job creation in the industry. It is hoped the move from Dana will be followed by other companies.
Firms without the funds to invest so heavily could also try taking on new facilities, such as invoice factoring, to help. An alternative commercial finance strategy, it is helping many Scottish companies grow in the present climate, without taking on higher debt.
Whilst many millions of barrels of oil remain untapped in North Sea oil fields, and offer one of the most important assets to the country’s economy, there was a note of caution.
In mid-December, the Centre for Public Policy for the Regions said that over the past 18 months, forecasts for oil revenue had been halved.