17 December 2012 10:36 [Source: ICIS news]
SINGAPORE (ICIS)--ITOCHU Corporation will jointly develop newly discovered oil fields in the North Sea with UK-based oil and gas firm Dana Petroleum, the Japanese trading house said on Monday.
The nine-well Western Isles development project (WIDP) is expected to produce more than 40,000 barrels of oil equivalent per day.
Both companies will develop the newly discovered Harris and Barra oil fields, 160km east of the Shetlands and 12km west of the Tern field.
Recoverable oil reserves of WIDP is estimated over 45m bbls and the cost to develop the Harris and Barra fields is expected to be at $1.6bn (€1.2bn), ITOCHU said.
“The Western Isles project is at the heart of our growth strategy. Unlocking the potential of these new fields is a significant milestone as we aim to double our production to 100,000 barrels a day by 2016,” said Marcus Richards, Dana’s group chief executive.
First oil is expected in 2015 and is estimated to increase ITOCHU’s net production by approximately 10,000 barrels oil per day. The project is expected to add more than 30,000 bbls to Dana’s daily production when it comes onstream.
($1 = €0.76)
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