Five questions answered on BP’s £330m Atlantic offshore oil investment

Appraisal drilling.

BP, along with a consortium of other oil and gas companies, announced today it will invest £330m in appraisal drilling in the Atlantic Ocean.

How many appraisal wells will they be drilling?

They will be drilling five appraisal wells over the next two years in the Clair field, located in the Atlantic Ocean, west of Shetland.

The field was originally discovered 35 years ago but initial drilling didn’t start until 2005.

Who are the other members of the consortium?

The consortium is made up of BP Shell, ConocoPhillips and Chevron.

Why have the consortium chosen now to expand drilling in the field?

Clair is expected to hold eight billion barrels of oil, but up until now it has been technically difficult to drill. The government’s new oil and gas strategy, which was unveiled recently, may also have encouraged further production.

The strategy includes the government working with the industry to tackle a looming skills shortage, partly by re-training military leavers to fill some of the 15,000 new jobs anticipated to be created in the oil and gas sector over the next five years. The government will also encourage more technological advancement through research and development, as well as commitment to a new £7m Neptune offshore technology centre of excellence in Newcastle.

What are the consortium’s future plans for the Clair field?

Depending on these initial drilling results up to 12 further wells could be drilled.

It is hoped the appraisal programme will lead to a third phase, taking production well beyond 2050. Any new oil would continue to be pumped by pipeline to Shetland.

Analysts are predicting that the Atlantic could over take the North Sea as the UK's biggest oil-producing region within 20 years.

What has the Energy and Climate Change Secretary Ed Davey said about this latest development in the Atlantic?

Davey said in a press release:

“This announcement by BP of a two year appraisal programme for the Greater Clair area West of Shetland is excellent news. It shows the industry’s commitment to maximise the potential in this area, which could hold up to 17 per cent of our oil and gas reserves. 

“Greater Clair proves there is still a long future for oil and gas production in the North Sea and will give confidence to new recruits that the industry offers a career for life.”

Photograph: Getty Images

Heidi Vella is a features writer for Nridigital.com

Photo: Getty Images
Show Hide image

What do Labour's lost voters make of the Labour leadership candidates?

What does Newsnight's focus group make of the Labour leadership candidates?

Tonight on Newsnight, an IpsosMori focus group of former Labour voters talks about the four Labour leadership candidates. What did they make of the four candidates?

On Andy Burnham:

“He’s the old guard, with Yvette Cooper”

“It’s the same message they were trying to portray right up to the election”​

“I thought that he acknowledged the fact that they didn’t say sorry during the time of the election, and how can you expect people to vote for you when you’re not actually acknowledging that you were part of the problem”​

“Strongish leader, and at least he’s acknowledging and saying let’s move on from here as opposed to wishy washy”

“I was surprised how long he’d been in politics if he was talking about Tony Blair years – he doesn’t look old enough”

On Jeremy Corbyn:

"“He’s the older guy with the grey hair who’s got all the policies straight out of the sixties and is a bit of a hippy as well is what he comes across as” 

“I agree with most of what he said, I must admit, but I don’t think as a country we can afford his principles”

“He was just going to be the opposite of Conservatives, but there might be policies on the Conservative side that, y’know, might be good policies”

“I’ve heard in the paper he’s the favourite to win the Labour leadership. Well, if that was him, then I won’t be voting for Labour, put it that way”

“I think he’s a very good politician but he’s unelectable as a Prime Minister”

On Yvette Cooper

“She sounds quite positive doesn’t she – for families and their everyday issues”

“Bedroom tax, working tax credits, mainly mum things as well”

“We had Margaret Thatcher obviously years ago, and then I’ve always thought about it being a man, I wanted a man, thinking they were stronger…  she was very strong and decisive as well”

“She was very clear – more so than the other guy [Burnham]”

“I think she’s trying to play down her economics background to sort of distance herself from her husband… I think she’s dumbing herself down”

On Liz Kendall

“None of it came from the heart”

“She just sounds like someone’s told her to say something, it’s not coming from the heart, she needs passion”

“Rather than saying what she’s going to do, she’s attacking”

“She reminded me of a headteacher when she was standing there, and she was quite boring. She just didn’t seem to have any sort of personality, and you can’t imagine her being a leader of a party”

“With Liz Kendall and Andy Burnham there’s a lot of rhetoric but there doesn’t seem to be a lot of direction behind what they’re saying. There seems to be a lot of words but no action.”

And, finally, a piece of advice for all four candidates, should they win the leadership election:

“Get down on your hands and knees and start praying”

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.