BP BP Plc

   By Ian Walker 
 

BP PLC (BP.LN) said Monday that it received approval from the U.K. Oil and Gas Authority to develop the Alligin field west of Shetland, in which it is the operator and has a 50% share.

The oil major said 230 million pounds ($300 million) will be invested in the field, which is expected to produce 12,000 barrels gross of oil equivalent a day at peak. The well is targeted to produce 20 million barrels of oil equivalent and is expected to come on-stream in 2020.

Alligin, which will consist of two wells, is located 140 kilometers west of Shetland in a water depth of 475 meters. It forms part of the Greater Schiehallion area.

"Alligin is part of our advantaged oil story, rescuing stranded reserves and tying them back into existing infrastructure," said BP North Sea Regional President Ariel Flores. "Developments like this have shorter project cycles, allowing us to bring on new production quicker," she added.

Royal Dutch Shell PLC (RDSB.LN) has the other 50% share in the Alligin field.

Write to Ian Walker at ian.walker@wsj.com/

(END) Dow Jones Newswires

October 22, 2018 02:56 ET (06:56 GMT)

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