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British Petroleum plc (NYSE: BP) announced it plans to spend up to £4.5 billion ($7.1 billion) to develop the Clair Ridge oil property in the North Sea just west of the Shetland islands of Scotland.
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The operation will actually serve as an extension of the existing Clair oilfield and also involve investments from other major oil companies Royal Dutch Shell plc (NYSE: RDS-A), ConocoPhillips (NYSE: COP) and Chevron (NYSE: CVX).
All told, BP and its partners will invest nearly £10 billion ($15.7 billion) in North Sea oil and gas properties over the next five years.
BP said its new North Sea oil and gas investments will create about 3,000 jobs.
Robert Dudley, BP’s chief executive, said that following a long period of decline, oil investments in the North Sea and the Atlantic Margin will again be ramped up.
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"Although it began over forty years ago, the story of the North Sea oil industry has a long way yet to run," he said.
"After some years of decline, we now see the potential to maintain our production from the North Sea at around 200,000-250,000 barrels of oil equivalent a day until 2030. And we are working on projects that will take production from some of our largest fields out towards 2050."
Earlier this year, BP and its partners already committed to spending £3 billion ($4.7 billion) to redevelop the Schielhallion and Loyal fields, which are also located west of the Shetland Islands.
BP will also invest £700 million ($1.09 billion) to develop the Kinnoull field in the central North Sea.
In addition, BP and Germany’s RWE AG plan to spend £550 million ($864 million) to develop the Devenick gas field in the North Sea.
UK Prime Minister David Cameron has hailed BP investment as “a great boost to the rest of our economy" and a "massive boost for jobs and growth.”
Speaking in Aberdeen, on the northeast coast of Scotland, Cameron told reporters: "We live in a very dangerous and difficult world; we do not want to be over reliant on energy supplies from difficult parts of the world, from unstable parts of the world. And it is a huge national advantage having such a brilliant oil and gas industry here in Aberdeen and here in the North Sea.”
Cameron added: "We should treasure that and want to see it expand, want to see it grow, want to see it be part of a good and diversified energy industry in the UK."
The PM said he wants Aberdeen to remain a center of gas and oil investment.
