BP Share News (BP.)

(Sharecast News) - BP received approval on Monday for a development off the coast of Shetland which it is hoped will produce 20m barrels of oil, or 12,000 barrels gross of oil equivalent a day at peak.The developments at Alligin field, which won approval from the oil and gas authority and is part of the Greater Schiehallion area off the west of the island, consists of two new wells which are expected to come on stream in 2020.New subsea infrastructure will be constructed as part of the project, including gas lift and water injection pipeline systems, and a new controls umbilical.BP North Sea regional president Ariel Flores said: "Alligin is part of our advantaged oil story, rescuing stranded reserves and tying them back into existing infrastructure. Developments like this, have shorter project cycles, allowing us to bring on new production quicker. These subsea tiebacks complement our major start-ups and underpin BP's commitment to the North Sea."It is the company's second North Sea development approval in the last two months after BP got the go-ahead for Vorlich, which targets 30m barrels of oil equivalent, back in September.Brenda Wyllie, West of Shetland and Northern North Sea area manager at the oil and gas authority, said: "The oil and gas authority is pleased to consent to the development of the Alligin field. This fast-tracked project will maximise economic recovery through utilising capacity in the Glen Lyon FPSO and is a good example of the competitive advantage available to operators from the extensive infrastructure installed in the UKCS."BP's shares were down 0.81% at 553.00p at 1642 BST.