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New O&G development off Scotland to boost UK production

22nd October 2012

Downing Street gives Royal Dutch Shell green light to start development of 35,000 boepd field off Scotland

New O&G development off Scotland to boost UK production
The field is expected to recover an average of 35,000 barrels of oil equivalent per day

Downing Street today gave energy major Royal Dutch Shell the go ahead for a new oil and gas development off the coast of Scotland which is expected to boost UK daily production by 2 per cent.

Located off the East Coast of Scotland, the Fram field, to be operated by Shell, is one of the biggest developments to be given a green light in the past five years, the UK Department of Energy said in a press release. Once production starts, the field is expected to recover an average of 35,000 barrels of oil equivalent per day.

 “The durability of oil production in the North Sea constantly confounds expectation. It is a tribute to the high-tech advances and expertise of British industry, which has constantly pushed the boundaries of what can be produced,” UK energy minister John Hayes said.

“Fram itself will add around two per cent to our oil and gas production - securing jobs, creating revenue and adding to our security of supply. This announcement shows that by working with industry and by creating the right fiscal environment, our oil supplies will continue to be an asset to Britain for years to come,” Hayes added.

While the UK’s energy revenue rose substantially in 2010-2011 (approximately GBP 8.8bn total revenue) and 2011-2012 (GBP 11.25bn) due to a rise in oil prices, UK oil and gas production has been declining since 2009-2010, according to data published by the HM Revenue & Customs.

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