GR Direct - Sony - Save up to £300 on selected Bravia OLED & LED TVs
Saturday 18 May 2024
 8.3°C   WSW Light Breeze
Ocean Kinetics - The Engineering Experts

News / Kraken wakes

The Kraken field layout. Image EnQuest

LERWICK Port Authority hopes to benefit from the construction of a major new oil field to be developed 77 miles east of the isles.

Aberdeen-based EnQuest announced on Friday they had been cleared by the UK Department of Energy and Climate Change to go ahead with the £4 billion Kraken field in the North Sea’s East Shetland Basin.

The company will drill 25 wells to access two neighbouring fields, Kraken and Kraken North, that will be tied back to a floating, production, storage and offloading vessel (FPSO).

The field holds an estimated 137 billion barrels of heavy oil that will be extracted at 50,000 barrels a day over 25 years, with first production expected in 2016 or 2017.

Lerwick Port Authority chief executive Sandra Laurenson said she hoped the company would use the harbour during the construction phase.

“I am sure we are in a good geographical position to offer support and for handling any of the kit that is required for the placing and the mooring of the FPSO,” she said.

“This is the kind of work we are seeing more of in Lerwick because of how wells are developed these days.”

Northern isles MP and Scottish secretary Alistair Carmichael welcomed the decision, which he called a “vote of confidence” in the oil industry and the North Sea by the UK government.

The government has awarded two £800 million ‘ultra heavy oil’ tax allowances to the firm for what will be the largest investment in the North Sea this year.

The construction phase is expected to create roughly 20,000 jobs, with a further 1,000 during its quarter century lifespan.

“The North Sea oil is a crucial part of the national economy, and very important to Orkney and Shetland,” Carmichael said.

Chancellor of the Exchequer George Osborne said it was evidence that its efforts to create a competitive tax regime to get the most oil and gas out of the North Sea were working.

Become a supporter of Shetland News

 

Scottish energy minister Fergus Ewing said it demonstrated the faith that the oil and gas industry had in the future of the North Sea as an oil producing province.

EnQuest chief executive Amjad Bseisu said companies like his were the future of the North Sea.

“It is only by combining our skills and expertise with fiscal incentives, such as heavy oil allowances, that really substantial projects like Kraken are possible,” he said.

EnQuest has a 60 per cent interest in Kraken. Its partners in the development are Cairn Energy and First Oil.

Become a supporter of Shetland News

Shetland News is asking its many readers to consider start paying for their dose of the latest local news delivered straight to their PC, tablet or mobile phone.

Journalism comes at a price and because that price is not being paid in today’s rapidly changing media world, most publishers - national and local - struggle financially despite very healthy audience figures.

Most online publishers have started charging for access to their websites, others have chosen a different route. Shetland News currently has  over 600 supporters  who are all making small voluntary financial contributions. All funds go towards covering our cost and improving the service further.

Your contribution will ensure Shetland News can: -

  • Bring you the headlines as they happen;
  • Stay editorially independent;
  • Give a voice to the community;
  • Grow site traffic further;
  • Research and publish more in-depth news, including more Shetland Lives features.

If you appreciate what we do and feel strongly about impartial local journalism, then please become a supporter of Shetland News by either making a single payment or monthly subscription.

Support us from as little as £3 per month – it only takes a minute to sign up. Thank you.

 
Categories

Newsletters

Subscribe to a selection of different newsletters from Shetland News, varying from breaking news delivered on the minute, to a weekly round-up of the opinion posts. All delivered straight to your inbox.

Daily Briefing Newsletter Weekly Highlights Newsletter Opinion Newsletter Life in Shetland Newsletter

JavaScript Required

We're sorry, but Shetland News isn't fully functional without JavaScript enabled.
Head over to the help page for instructions on how to enable JavaScript on your browser.

Your Privacy

We use cookies on our site to improve your experience.
By using our service, you agree to our Privacy Policy and Cookie Policy.

Browser is out-of-date

Shetland News isn't fully functional with this version of .
Head over to the help page for instructions on updating your browser for more security, improved speed and the best overall experience on this site.

Interested in Notifications?

Get notifications from Shetland News for important and breaking news.
You can unsubscribe at any time.

Become a supporter of Shetland News

We're committed to ensuring everyone has equitable access to impartial, open and quality local journalism that benefits all residents.

By supporting Shetland News, you play a vital role in ensuring we remain a pivotal resource in supporting the community.

Support us from as little as £3 per month – it only takes a minute to sign up. Thank you.