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Energy / BP announces first oil from Alligin field

BP HAS said it is encouraged by the early production from the Alligin oil field to the west of Shetland.

The relatively small Alligin reservoir forms part of the Greater Schiehallion Area and has been developed as a two-well subsea tieback into the existing Schiehallion and Loyal subsea infrastructure and the Glen Lyon floating, production, storage, offload (FPSO) vessel. The oil bypasses Sullom Voe Terminal.

The field, which is estimated to hold 20 million barrels of oil equivalent, was originally forecast to produce 12,000 barrels a day at peak but project performance has been better than expected at 15,000 barrels in late December, BP said.

BP North Sea regional president Ariel Flores said: “Achieving first oil from the Alligin field safely, under budget and ahead of schedule is testament to the performance of the project team and their agile approach to planning and execution.

“Alligin is part of BP’s advantaged oil strategy, a development with a shorter project cycle time with oil that is economic to produce and low risk to bring to market.

“Subsea tiebacks like this complement our major start-ups and help underpin our growing portfolio west of Shetland.”

Operator BP has a 50 per share in Alligin, with the other 50 per cent held by Shell.