BP (NYSE:BP) and its partners announced on Tuesday a 700 million pound ($1.1 billion) investment to develop the Kinnull reservoir in the central North Sea.
Kinnull, located off the coasts of Great Britain and the Netherlands, holds about 45 million barrels of oil equivalent, according to BP. The deal will extend production beyond 2020 with a peak rate of 45,000 barrels a day.
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Trevor Garlick, BPs regional president for its North Sea business, said the project is a further demonstration of the British oil companys vision to sustain a material and high quality business in the North Sea region.
Major modifications will be done to the site to accept and facilitate the new production fluids, with construction slated to be completed in 2013. The oil will be exported through the existing Forties pipeline system to Kinneil and the CATS pipeline system to Teesside.