XCITE Energy has said it is confident the proposed development of the giant Bentley heavy oil field east of Shetland can still be viable in spite of the sharp fall in the oil price.
Brent crude traded at $78.40 per barrel yesterday, compared with $115/bbl in June.
Surrey-based Xcite announced it had made further progress with planning for the development of Bentley after signing an agreement with a Chinese rig specialist.
The company said the Memorandum of Understanding entered into with China Oilfield Services Limited sets out the principles for the provision of a high-specification, harsh environment jack-up drilling rig, together with equipment and personnel for the Bentley field.
Final specifications of the rig are currently being agreed. It is expected the rig will be built in Singapore.
Xcite's chief executive, Rupert Cole, said: "Selecting this ultra-high specification drilling rig, and constructing it at the Keppel FELS yard in Singapore, is an important part of securing both the future schedule and drilling efficiency of the Bentley project."
He said Xcite has now filled the key development group roles for the project.
It has signed deals with other companies for the supply of essentials such as a floating storage and offloading facility.
Xcite, which has an operations office in Aberdeen, has described Bentley as one of the largest undeveloped fields in the North Sea but has not yet finalised a plan for a commercial development.
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