BP has got a green light to drill a deepwater well off the Shetland Island, the UK government said on Thursday, a move in line with Britain's plans to encourage more exploration in the North Sea. The announcement came a day after the UK government's annual budget unveiled plans to boost investment in the North Sea, giving oil firms certainty on the level of tax relief they will receive when they dismantle pipelines and platforms and introducing new tax breaks for some projects.
Energy Minister Charles Hendry has given BP consent to drill the deepwater North Uist well, the Department of Energy and Climate Change (DECC) said in a statement. The North Uist well in Block 213/25c is 125 km north-west of the Shetland Isles in a water depth of approximately 1,290 metres, the statement said.
"This consent is very positive news for the West of Shetland following the announcement in the budget aimed at increasing investment in this new frontier for oil and gas exploration," Hendry said in the statement. He also said the department had "very carefully scrutinised" BP's plans and its emergency response measures.
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