Following the announcement of an earlier-than-expected UK general election in July 2024, JOG will assess the plan to drill and extract oil from the Buchan redevelopment project, reported to be the third-largest pre-development field on the UK Continental Shelf.

The project is expected to be ready for field development plan approval by the end of this year.

However, the exact timing of this is “naturally linked to securing fiscal clarity from the next government and ensuring that the project remains financially attractive”, added JOG in a public statement.

Andrew Benitz, CEO of JOG, added in the statement: "With a UK General Election now announced, we are hopeful that fiscal clarity will be forthcoming in short order so that the industry can continue to do what it does best, namely investing in major capital projects that deliver vital low carbon homegrown energy and highly skilled jobs.” 

He continued that with the Buchan field, his company has a project "that will deliver a meaningful contribution to the energy transition process through our electrification strategy”, encouraging investment in floating offshore wind.

Operator NEO Energy owns 50% of the Buchan project, while Serica Energy holds 30% and JOG the remaining 20%.

NEO Energy has been advancing the work programme required to enable project sanction and the completion of the necessary engineering work is said to be on track, according to JOG.

While the first offshore survey, which was finished in May, obtained the geophysical data used for the subsea and drilling rig contract tendering process, a second survey to acquire geotechnical data is scheduled to start this month.

The Buchan field will be developed in the North Sea through up to five subsea production wells, supported by two water injection wells tied back to the FPSO Western Isles, which will be modified to be electrification-ready before redeployment to the field.

The gross development costs for the project are estimated at £850m–950m (up to $1.2bn).