Oil and gas company Hurricane Energy has received consent from UK authorities for the development and production of the Lancaster offshore field for the early production system (EPS) phase.
The field is scheduled to produce first oil in the first half of 2019.
Hurricane Energy chief executive Dr Robert Trice said: “The Lancaster EPS is not only an essential step in planning for the full field development of the company's Rona Ridge assets but also represents a substantial development in its own right, with planned production of 17,000 barrels of oil per day.
“This is an important step in demonstrating the potential of basement West of Shetland and in the UKCS more generally.”
The Lancaster licence is located in blocks 205/21a, 205/22a and 205/26b in shallow water depths of 160m.
It is estimated to host combined 2P Reserves and 2C Resources of 523 million barrels.
Hurricane Energy recently took the final investment decision to develop the Lancaster EPS by utilising Bluewater’s ‘Aoka Mizu’ FPSO unit.
The company has also signed a contract with Transocean to hire Paul B Loyd Jr, a semi-submersible drilling rig to carry out and complete previously drilled Lancaster 205/21a-6 and 205/21a-7Z horizontal production wells.
The drilling programme is scheduled to commence from the second quarter of next year.
Hurricane's complete acreage is located on the Rona Ridge, West of Shetland, where it made two significant discoveries at Halifax and Lincoln during the 2016-2017 drilling campaign.