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News / SIC to fight for Clair oil

Shetland Islands Council is to make representations to BP urging the oil giant to use its existing pipeline for exporting oil from phase 2 of the massive Clair oil field, due to come on stream after 2015.

This week, BP re-affirmed its commitment to invest around £4 billion to bring the Clair Ridge on stream with an estimated production of 120,000 barrels a day.

While it has always been expected that this would be exported to Sullom Voe Terminal via the existing infrastructure, harbour board chairman Alastair Cooper warned yesterday (Friday) that this shouldn’t been taken as signed and sealed.

“I don’t want to see offshore loading,” he said, adding that the council needed to make the case for using the pipeline at any stage along the consultation route during the next year or two.

Sullom Voe harbour master Roger Moore said there was concern that BP could decide to use a floating production vessel, which would increase the risk of an oil spill just 40 miles to the west of the isles.

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“In case of an incident it would not take long for the oil showing up on our shore,” he said.

Board member and former secretary of the environmental group KIMO, Rick Nickerson, said the SIC had to make the case that bringing the oil ashore via the pipeline was environmentally the safer option.

Meanwhile, Mr Cooper repeated his warnings from earlier this week that the port and terminal could lose the business from the Schiehallion oil field, 100 miles to the west of Shetland, should BP decide to build a new floating and production vessel (FPSO).

“Schiehallion could be lost as the oil is stabilised offshore and then taken directly to market in Europe,” he said.

The current contract for Schiehallion oil to be taken to Sullom Voe Terminal by shuttle tanker runs until 2012, when BP is expected to make a final decision on the future of the oil field. Any new FPSO will not be in place before 2015.

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