BP Boosts Stake in West Shetland Field as Oil Price Rises

BP has increased its stake in a west of Shetland oil field as the price of Brent crude continues to rise.

The energy giant is raising its share in the Clair field by 16.5%, describing it as a “massive vote of confidence in the North Sea”.

The price of Brent crude oil has risen steadily since 2016, when it crashed from more than $110 a barrel to less than $30. It now sits at around $78.

BP North Sea president Ariel Flores said: “This is a massive vote of confidence in the North Sea and further evidence of BP’s enduring commitment to the region.

“It signals our intent to look for opportunities around our core hubs in the west of Shetland and central North Sea.”

BP will now own 28.6% of Clair after taking on 16.5% of ConocoPhillips’ share, leaving the US firm with a 24% stake.

In exchange, BP is selling ConocoPhillips its interests in Alaskan oil fields and a transport company. BP said the deal will be “cash neutral”.

BP recently announced that its newest asset, the Glen Lyon floating production facility, was producing 130,000 barrels of oil a day.

The oil downturn which began in 2014 cost thousands of North Sea jobs, including around 1000 at BP.

Source: stv.tv