Developers of major North Sea field to await election outcome

05/06/2024

THE developers of a major North Sea field off the coast of Aberdeen have warned that the next government will need make the project “financially attractive” if it is to proceed.

Jersey Oil & Gas has provided an update on the Buchan redevelopment project – which will be operated by NEO Energy – ahead of its AGM.

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The firm said the following the announcement of an “earlier than expected” General Election, it has assessed the “implications” for progressing the project.

They said the decision to proceed with the project “is naturally linked to securing fiscal clarity from the next government and ensuring that the project remains financially attractive.”

Andrew Benitz, the firm’s chief executive officer, said: “With a UK General Election now announced, we are hopeful that fiscal clarity will be forthcoming in short order so that the industry can continue to do what it does best, namely investing in major capital projects that deliver vital low carbon homegrown energy and highly skilled jobs.

“In the case of the Buchan field, we have a project that will deliver a meaningful contribution to the energy transition process through our electrification strategy, which helps facilitate investment in cutting-edge floating offshore wind.”

Following the receipt of fiscal clarity and subject to Field Development Plan (FDP) approval, the major contract awards and capital commitments for the project are now expected in 2025, which leads to Buchan first production being targeted for late 2027.

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