Project partners have sanctioned the development of the Arran field in the central North Sea.
The announcement came from RockRose Energy, which has just completed the acquisition of a 20.43% interest in Arran from Korean-owned Dana Petroleum.
RockRose has also signed an “equity realignment letter agreement” taking its interest to 30.43%.
It is understood that the additional 10% will come from Zennor Petroleum, which currently has 47.36%.
Dana had been the operator, but Shell will now take up the helm. Shell has a 23.68% stake in the project.
In its latest full-year accounts, Dana said the risk profile for the development was “not supportable”.
Arran is expected to produce from four subsea development wells, with gas and liquids exported via a new pipeline to Shell’s Shearwater platform.
The field is expected to pump out about 21,000 barrels of oil equivalent per day in total.
RockRose executive chairman Andrew Austin said: “The completion of the Arran acquisition and investment decision by the partners is a major milestone for RockRose as the first development project the company has participated in.
“The exploitation of infill drilling opportunities continues as part of our portfolio’s evolution. All activity, including infill drilling, development projects and decommissioning is funded from cash flow.”