Offshore industry group Oil & Gas UK said it was an encouraging for the North Sea

BP appears set to invest around US$1bn into the Eastern Trough Area project, in the North Sea, which will see key infrastructure renewed until at least 2030.The oil major’s decision is a boost for the North Sea in general as well as the UK government specifically as it was reportedly influenced directly by changes to the tax regime.

It is anticipated that the new work programme will see new wells drilled as well as additional reservoir stimulation activities, and importantly will see upgrades to infrastructure.

The investment plans, which will almost double the life of the group of oil fields, were confirmed by Trevor Garlick, the oil major’s regional head for the North Sea, in an interview with industry publication Energy Voice.

Garlick said that BP remains committed to improving the North Sea’s competitiveness.

Elsewhere Deirdre Michie, chief executive of offshore industry group Oil & Gas UK, said: “It is encouraging to see the continuing investment BP is making in its North Sea assets and projects to deliver a secure indigenous supply of energy for the country.

“Given the harsh business environment upstream oil and gas companies currently face, with the oil price more than halved since this time last year, industry as a whole is putting a great deal of effort into improving the performance of its assets – and that is something we’ll look to explore in further detail in our 2015 Economic Report next month.”

http://www.proactiveinvestors.co.uk/companies/news/109706/bp-gives-investment-boost-to-north-sea-oil-sector