BP restarts North Sea production at Schiehallion

Schiehallion oilfield off Shetland in the North Sea has begun producing oil for BP and Shell for the first time since it was shut down for refurbishment in 2013.

BP has said the field, which is being tapped again as part of the $4.4bn Quad 204 project, could generate around 450m barrels of crude oil for the companies up to at least 2035 thanks to new drilling technology.

BP's partners on the venture are Shell and Siccar Point Energy.

"The start of production from Quad 204 - one of the largest recent investments in the UK - is an important milestone for BP, marking a return to growth for our North Sea business," said chief executive Bob Dudley.

Mark Thomas, BP’s head of North Sea business, added: "BP has developed a strong track record of finding, developing and operating big offshore oil resources west of Shetland - we have and will continue to use the latest technology to maximise recovery from the Schiehallion Area."

Deirdre Michie, chief executive of industry body Oil and Gas UK, said it was a positive endorsement of the potential the UK Continental Shelf with the right investment.

"It's also extremely heartening to see one of the original explorers of the basin using new, ambitious approaches and pioneering technology to help lead a revival in production," she said.

"As well as being a welcome boost for the hard pressed supply chain, the announcement from BP and co-venturers Shell and Siccar Point Energy, proves that our faith in the long term health of the basin is well founded. "