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 northwest 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.

"In accordance with DECC standard guidance as part of the assessment process, BP provided detailed confirmation that they have taken into account the findings and recommendations of the various Macondo investigation reports."

Earlier in March, BP struck a deal estimated at $7.8 million with businesses and individuals suing over the massive spill from the deepwater Macondo well in the Gulf of Mexico in 2010.