Oil & Gas UK Economic Report 2014

Sullom Voe Terminal – Delivering Value into the Future

and capabilities specific to the needs of newer fields. This involves an extensive remediation programme for the existing plant, construction of new gas sweetening facilities – to remove hydrogen sulphide from WoS gas – and connection to Total’s Laggan-Tormore gas plant which is under construction on an adjacent site. In total, BP and its partners expect to invest up to £1 billion. However, the renewal programme extends beyond the facilities. A substantial effort is also being invested in increasing and developing the skills of the terminal’s workforce and improving processes and working methods to meet the demands of the future. It is expected that the workforce will increase by 250 to 300 during the renewal programme and a further 400 could be needed to build the gas plant. This major project is designed to enable both the development of new fields lying WoS and continued safe, reliable and efficient operations for existing fields to the east, for at least the next 20 years.

At about 1,000 acres (400 hectares), BP’s Sullom Voe Terminal is one of the largest in Europe. The terminal has processed oil and gas from more than 30 surrounding fields since the 1970s and approximately 20 per cent of the UK’s oil production passes through it. With a comprehensive renewal and upgrade programme in progress, it will be well positioned to take advantage of development opportunities to the east and west of Shetland. The terminal plays a significant role in the wider economy and has a critical role in BP’s UKCS strategy, as the company progresses the Clair Ridge development and Quad204 redevelopment to the west and extends the life of its Magnus field to the east. With its partners, BP is investing significant resources and effort into renewing the terminal’s facilities so it remains competitive and meets the needs of existing customers, as well as providing additional services

70

ECONOMIC REPORT 2014