Orkney oil terminal deal welcomed

Computer generated image of the Golden Eagle development Golden Eagle has been designed as a standalone facility with two linked platforms

Related Stories

An oil terminal in the Orkney Islands has been given a major boost following a North Sea deal.

Oil and gas firm Talisman Energy has signed an agreement to provide transportation and processing services to the Golden Eagle development, which is currently under construction.

The services will be provided through the Talisman-operated Flotta terminal at the southern end of Scapa Flow.

Orkney Islands Council welcomed the deal, saying it would secure 200 jobs.

The £2.2bn Golden Eagle project is expected to produce 140 million barrels of oil equivalent over 18 years.

First oil from the field, which lies 110km (68 miles) north east of Aberdeen, is expected in late 2014.

Golden Eagle is operated by Nexen Petroleum UK, which also holds a 36.54% working interest in the field.

The remaining interest is held by Maersk Oil North Sea UK (31.56%), Suncor Energy UK (26.69%) and Edinburgh Oil and Gas (5.21%).

'Significant boost'

Talisman said the agreement was "the most significant piece of business" that the Flotta terminal had been awarded since it took over as operator.

Start Quote

This is an important milestone for Golden Eagle, one of the biggest developments in the North Sea today”

End Quote Paul Harris Nexen

Output from Golden Eagle is expected to double the volumes shipped through Flotta.

Currently about 10% of the UK's oil output comes ashore at the terminal before being pumped into tankers and shipped around the globe.

Paul Harris, Golden Eagle project director for Nexen, said: "This is an important milestone for Golden Eagle, one of the biggest developments in the North Sea today.

"We expect to start offshore installation work next year and our schedule for first oil remains on track."

Orkney Islands Council welcomed the agreement.

The council's chairman of development and infrastructure, James Stockan, said: "It is great news for Orkney.

"The last few years have seen some difficult times for our local industries and this brings a welcome boost to our economy, the Flotta oil terminal and its workforce."

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Scotland business stories


Features & Analysis

  • Woman in swimming pool Green stuff

    The element that makes a familiar smell when mixed with urine

  • Plane at Shannon airportShannon's call

    The airport that hosted a roll-call of presidents

  • Susanne du ToitTop 10 Tips

    Portrait painter Susanne du Toit on being an artist

  • Atletico's Diego Godin celebrates his goal with teammate David VillaWeek in pictures

    The best news photographs from around the world

Elsewhere on the BBC

  • ITChild's play

    It's never been easier for small businesses to get their message out to the world


  • Joe Ierardi playing a pianoClick Watch

    Meet the man trying to create the perfect digital piano - but is it as good as the real thing?

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.