This will make wee burney jump for joy

[John Arton]

Huge new oil field discovered off the Shetlands
UK's ‘largest undeveloped oil field’ discovered off Scottish coast
rgds
JA

[Keith Tindell]

Might make the Setlands apply for an independence vote from Scotland !!!, kt

[Keith at Tregenna]

OMG: New oil fields up North, could be a huge change to the Power House ?

K.

[happy daze john in oz]

It may well be in the Shetlands sea region but if money is required to raise funds to develop it then the biggest winners will be the sharte holders.
But of course it may sit there for years before anything is done, wait until the price of oil is well up on it's present price.

[Des Taff Jenkins]

Hi John.
Just a thought, who owns the territorial rights to that part of the sea? Is it Scotland or Britain, being Scotland lost the vote on independence it could be British oil.
Cheers Des

[Ivan Cloherty]

Well if Scotland goes independent, they won't have the money to develop it, so outsiders will be needed, the only people with that dosh, will in all probability be the Chinese, unless our American cousins step in for strategic reasons to prevent the Chinese foothold on strategic reserves, although with all the shale gas being discovered in the USA and being exported then oil is becoming less relevant to their strategic requirements, and look on the bright side, at least the Scots and Chinese will be able to understand each other!

[j.sabourn]

There is every chance there is oil also 101 and a quarter miles due west of Fenit in Southern Ireland. Exploration holes were being done in 1978 by a Sedco rig which was American . Although going to the expense of drilling holes must have come from a good seismic report, maybe at the time wasn't feasible as to cost to start production, who knows??? that sort of information is kept under wraps for years. The same as at the moment in the Shetlands is not something just happened this all probably goes back to seismic work done years ago. The oil companies sit on such information until the need arises and there are no loose lips around, it is very expensive information to have. So if anyone thinks of going out into the North Atlantic and making their fortune 101 and a quarter miles due west of Fenit will probably find themselves wrapped up in all sorts of lawsuits as that bloc will probably belong to the oil company who are paying for a better word rent on it. Who nationally that area would come under I wouldn't have a clue. Don't think the usual 3 or 15 miles or whatever is written in seafaring novels applies. Cheers JWS

[j.sabourn]

Oil contracts and such is much more complicated than getting permission for building a ship. Out here in Oz I believe the procedure is as follows. An oil company approaches a country whose waters they want to work in. The country may have its adjacent sea areas divided up into blocs on a chart. The oil company will then show what bloc they want to investigate a price for the rent so to speak for a term of 5 years with all the adjacent legal twists and turns will be agreed on, one of which will be that after a term of 5 years if no work has been done then the bloc is null and void to that particular oil company and will be open for anyone else to rent. If they go ahead the first thing in for exploration is the seismic vessel. If the reports are good the next thing in is the drilling rig, if she strikes oil or gas of sufficient commercial use to make a profit then the well head will be sealed, and the rig departs. This may remain like that for a number of years until required and is commercially wise to go into production, all the time the oil company pays a lease on that bloc. When the time comes that is profitable all the small print in the original agreement will be perused and more than likely another agreement drawn up. The oil company will undertake to produce the oil or gas and pay the taxes and all expenses accrued and selling to host country at a fixed barrel or cubic metre, this will all be done by legal beavers. And away it goes, the cost to the host country is very little I would imagine, and the oil company who is probably worth hundreds of billions will bear the cost until the profits start rolling in for themselves and their shareholders. That is very roughly how it goes in a western democratic society. JWS

[Ivan Cloherty]

#8 Och, awaay wiv ye laddie! Wee Burnie willna tell yon SNP anything sa normal as that, the wee lassie willba spoutin its the manna fre eaven she knuu wa alredy there, which is wha she wans indeependence

[j.sabourn]

Ivan if she is that stupid to base Scotlands future on the basis of North Sea oil she cant be very bright. For starters North Sea oil is very light to start with and cant break down much further into lighter oils like you can with Arabian crude. So she will still have to import oil of the heavier type if she fancies herself as a Texan Oil Baron. She would be far better basing Scotlands economy on their excellent whiskey. Myself I think it would be disasterous for the Scottish people to go along with her reasoning. She is only there for a fixed term of a couple of years or so, Scotland has centuries to go hopefully as part of the UK, if not she stands to start losing her own population who will all of a sudden change their title to illegal immigrants and be looking elsewhere for a life. JS