AN oil field off the coast of Shetland will be the first to benefit from new technology that will significantly increase the amount of oil extracted from wells.

The £4.5 million Clair Ridge development is expected to produce an additional 42 million barrels of oil using the new technique, which has been developed by BP.

The site is the first large-scale offshore enhanced oil recovery (EOR) scheme to use the new LoSal EOR technology, which promises to increase both the yield and life of oilfields worldwide.

It has been hailed as a "landmark announcement of great significance" by Aberdeen University economist Alex Kemp, who claims it will boost industry profits, increase tax revenues and improve job sustainability.

Mr Kemp added that several other major oil companies were also studying the technique, which could be replicated elsewhere.