Premier Oil cleared to develop field west of Shetland

Premier Oil has been cleared to develop its Solan oil field in the UK Continental Shelf west of Shetland.

The field is expected to produce about 40 million barrels of oil, with an estimated initial production rate of 24,000 barrels of oil per day from the fourth quarter of 2014.

Premier's field development plan was approved by the Department of Energy and Climate Change.

The project will involve the drilling of four wells.

London-based Premier has a 60% stake in the Solan field, which lies about 170 miles west of Shetland.

Privately-owned Chrysaor, which specialises in the development and commercialisation of dormant discoveries, owns the remaining 40%.