Jersey Oil & Gas plc said that first production from the Buchan field has been deferred to late 2027 due to uncertainty of financial policies following the early General Election in July.
FDP
Operator NEO Energy is currently working on the field development plan, the completion and approval of which is linked to “fiscal clarity” to ensure the project remained “financially attractive”.
Major contract awards and capital commitments for the central North Sea project are now expected during 2025.
JOG added it remained fully funded with cash of more than £13 million and a forecast annual base cash spend of £3m.
The Buchan project is fully carried to the FDP with a further $20m payment due following the North Sea Transition Authority’s approval.
NEO is on course to finalise engineering work and in May completed the first offshore survey to obtain geophysical data for the subsea and drilling rig contract tendering process.
A second survey to obtain geotechnical data is scheduled to begin this month.
Progress continues on the subsurface studies required to finalise the drilling programme and operational verification and preparation for the joint venture to receive the ‘Western Isles’ FPSO.
Chief executive officer Andrew Benitz added: “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.”