Monday, 31 August 2021 09:11

Maersk Oil to invest £3billion in the North Sea and supply chain

The Maersk Oil-operated Culzean field development

More than £3billion is to be invested in the North Sea and its supply chain, following the UK Oil & Gas Authority’s approval of the development of the Maersk Oil-operated Culzean gas field.

The High Pressure, High Temperature (HPHT) field was discovered in 2008, and was the largest new field to be discovered in the UK North Sea for a decade. It is expected to produce enough gas to meet 5% of total UK demand at peak production in 2020-21.

Maersk Oil and its co-venturers, JX Nippon and BP, are to invest £3billion in the development, and are anticipating a further £2billion will be spent in the UK domestic market over the projected life of the field.

The investment will also support up to 6,000 UK jobs and create more than 400.

The Chancellor of the Exchequer, George Osborne, said: “Today’s announcement sends a clear signal that the North Sea is open for business.

“Already the UK’s oil and gas industry supports hundreds of thousands of jobs across the country and this £3billion investment comes on the back of massive government support for the sector.

“Despite challenging times, this government has backed the oil and gas industry at every turn, introducing a vital package of support to help it to protect and create jobs.”

Chief executive of the Oil & Gas Authority, Andy Samuel, said: “Maersk Oil and partners’ £3billion investment to develop the Culzean discovery is excellent news for the UK during a period when the decline in global oil prices has created difficult operating conditions for this critical sector of our economy.

“The Oil & Gas Authority has worked closely with Maersk Oil and HM Treasury on the development plans for the Culzean field, which will support many new contracts in the oil and gas supply chain across the UK.”

CEO of Maersk Oil, Jakob Thomasen, added: “Culzean is an important development for the UK and also for Maersk Oil and our co-venturers.

“We are pleased the field will support UK economic growth as well as extend understanding of HPHT development.

“Culzean is the latest in a series of large investments by Maersk Oil in the North Sea where we are active in Denmark, Norway and the UK – reflecting our commitment to the future of the North Sea region.”

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