BG Group has said it will invest in the North Sea but will limit spending in response to the oil price slump after welcoming the start of production from a field off Scotland.
The West Franklin field around 120 miles east of Aberdeen is expected to pump 40,000 barrels oil equivalent per day, making it a significant new source of production.
Following warnings that oil and gas firms will slash spending in the North Sea in response to the near 60 per cent fall in the oil price since June, a BG spokesman said: "We still plan to invest in the North Sea but, given the price environment, we will be scaling back what we commit to in the near term."
In October BG delayed a decision on whether to proceed with the complex Jackdaw project in the central North Sea, whilst it studies cheaper and lower risk development solutions.
BG noted yesterday that work on West Franklin allowed the firm to increase its knowledge of working on high pressure high temperature fields, such as Jackdaw, which pose challenges.
Ernst den Hartigh, Managing Director of BG Group's Europe exploration and production business, said: "By working closely with Total and other JV partners we have contributed and extended our knowledge of High Pressure High Temperature gas developments which is key to our UK strategy."
The company also noted that developing West Franklin will help extend the life of the giant Elgin Franklin production hub, which it is connected to.
BG has a 14.1 per cent stake in West Franklin. Total has 46.2 per cent, with Italy's ENI on 21.9 percent. Other partners include E.ON, ExxonMobil, Chevron, Summit and Dyas.
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