August 31, 2015: Maersk Oil, part of the AP Moller-Maersk Group, has received approval from the UK Oil & Gas Authority to develop the Culzean field in the central North Sea.
The company said development of the largest new field discovered in the UK North Sea for a decade is expected to produce enough gas to meet five percent of total UK demand at peak production in 2020/21.
Discovered in 2008, the gas condensate field has resources estimated at 250-300 million barrels of oil equivalent. Production is expected to start in 2019 and continue for at least 13 years, with plateau production of 60,000-90,000 barrels of oil equivalent per day.
Maersk Oil and its co-venturers, JX Nippon and BP (Britoil), are investing around £3billion (US$4.5 billion) in the development, with more than 50 percent committed to investments in the UK.
Over the projected life of the field, it is anticipated that £2.1billion (US$3.3 billion) in operating expenditure will be spent in the UK domestic market. The Culzean field aligns with the UK's commitment to increased gas-fired electricity generation and is expected to support an estimated 6,000 UK jobs and create more than 400 direct jobs.
Welcoming today's announcement, Jakob Thomasen, CEO of Maersk Oil said: "Culzean is an important development for the UK and also for Maersk Oil and our co-venturers. We are pleased the field will support UK economic growth as well as extend understanding of High Pressure High Temperature development.
"Culzean is the latest in a series of large investments by Maersk Oil in the North Sea where we are active in Denmark, Norway and the UK – reflecting our commitment to the future of the North Sea region," he added.