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BP has started oil production from the redeveloped Schiehallion Area after completion of the Quad 204 project in the west of Shetland region, offshore UK. 

Schiehallion and the adjacent Loyal fields, which were initially developed in the mid-1990s, started production in 1998 and produced nearly 400 million barrels of oil since then.

With redevelopment of these two fields, BP and partners Shell and Siccar Point Energy expect to recover another 450 million barrels of resources and extend their life until 2035 and beyond.

BP plans to gradually increase production level to 130,000bpd of oil this year.

BP Group chief executive Bob Dudley said: “The start of production from Quad 204, one of the largest recent investments in the UK, is an important milestone for BP, marking a return to growth for our North Sea business.

“As one of the series of important, higher-margin major projects that are now steadily coming on-line for BP, it also underpins our expectation for growing production and cash-flows from our upstream business over the coming few years.”

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By GlobalData

As part of the Quad 204 project, the harsh water floating, production, storage and offloading (FPSO) vessel, Glen Lyon, was constructed and installed at the location.

"The start of production from Quad 204 is an important milestone for BP, marking a return to growth for our North Sea business."

Subsea facilities were also replaced and up to 20 new wells were continuously drilled to enable the full development of the reserves. 

The 270m-long and 52m-wide Glen Lyon FPSO is capable of processing and exporting up to 130,000 barrels of oil per day and storing nearly 800,000 barrels of oil.

Currently, BP is planning to double its UK North Sea production to 200,000boe/d by 2020.

In the next 18 months, the company intends to participate in up to five exploration wells in the UK. 

Image: The Deepsea Aberdeen is contracted to drill wells across the Schiehallion and Loyal fields, as part of the Quad204 development. Photo: courtesy of BP/Flickr.