CNR unveils £300m investment for Ninian oil field in North Sea

The brownfield allowance scheme provides tax incentives for investment in existing fields

About £300m is set to be invested in a bid to extend the life of one of the oldest oil fields in the North Sea.

CNR International said it was preparing to make the investment after the UK government approved an application for a brownfield allowance for the project.

Canada-based CNR said the Ninian field decision would create jobs.

James Edens, CNR's managing director, said: "We forecast that the company's North Sea production will increase in the coming years."

The brownfield allowance scheme provides tax incentives for investment in existing North Sea fields.

Mike Tholen, industry body Oil and Gas UK's economics and commercial director, said: "Oil and Gas UK is pleased that the tax change made recently by the government to promote further investment in the UK's existing oil and gas fields continues to deliver real benefits to the national economy."

CNR's investment is the latest in a series of major North Sea projects which have been announced in recent months.

In March, Norway-listed Aker Solutions won a £70m contract to help redevelop BP's Schiehallion field and the adjacent Loyal field.

Oil engineers and project managers Amec also secured contracts worth £68m to install two new platforms in the North Atlantic, west of Shetland.

Industrial investor Clyde Blowers Capital announced in February it was poised to move into the North Sea oil and gas sector after buying a US energy services business.

In the same month, the UK government approved a £4.5bn project by Norwegian firm Statoil to develop the Mariner heavy oil field, which lies about 150km (93 miles) east of the Shetland Isles.