BP Amoco to pump £1bn into N Sea oil development

BP Amoco is likely to invest at least £1bn in the UK offshore sector of the North Sea as part of a $26bn (£16.4bn), three-year capital investment programme announced last week. The company would not name specific projects, but they are expected to include the £600m development of the Clair field off west Scotland. This […]

BP Amoco is likely to invest at least £1bn in the UK offshore sector of the North Sea as part of a $26bn (£16.4bn), three-year capital investment programme announced last week.

The company would not name specific projects, but they are expected to include the £600m development of the Clair field off west Scotland. This was shelved last year over concerns about oil prices and changes to the tax regime.

BP Amoco is also expected to press ahead with gas projects in the North Sea and further oil exploration and development west of the Shetland Islands. The Clair project alone would create about 2,000 jobs.

While the oil price has recently recovered to around $18 a barrel, the investments should go ahead regardless of whether or not it falls again, chief executive Sir John Browne said. The company aims to drive down costs over the period to the point where `the group is robust at $11 a barrel’.

* BG, the gas exploration and transmission company, announced this week that it would spend £750m in the UK over the next four years on two new power stations and a number of offshore exploration projects.