(Adds impact on Forties production, Brent futures)
LONDON, Dec 30 (Reuters) - BP has started producingoil from its Kinnoull field in the central North Sea, the oilmajor said on Tuesday, bringing on stream a new field that feedsinto BP's existing Andrew platform off the coast of Scotland.
Oil and gas produced at Andrew and Kinnoull is expected topeak at over 50,000 barrels of oil equivalent per day and willbe transported to the mainland via the Forties oil pipeline andCATS gas pipeline, BP said.
The contribution from Kinnoull should help to offset some ofthe decline in Forties production from the Nexen-operatedBuzzard field. Forties is the biggest of the four crude streamsthat underpin the price of dated Brent and Brent futures so fluctuations in Forties supply can impact global oil prices.
Traders said that Buzzard is becoming well-constrained andis currently pumping at about 180,000 barrels per day (bpd),down from its previous maximum operating capacity of about205,000 bpd.
The latest updates on the Forties Pipeline System websiteindicate a smaller contribution to the Forties blend fromBuzzard in the first quarter of 2015, dropping to around 30percent in April from 43 percent in the week Dec. 22-28.
BP said it was investing, together with project partners,more than 7 billion pounds ($10.9 billion) in the North Sea overthe next five years and that it had won licences in 7 new NorthSea blocks in the government's latest allocation round.
It has traditionally invested heavily in Britain's North Seaexploration but declining resources and expensive operating anddrilling costs have prompted it to shift its focus to moreprofitable markets.
BP has sold several North Sea assets, including oil fields,to Abu Dhabi National Energy (TAQA). ($1 = 0.6440 pounds) (Reporting by Karolin Schaps and Claire Milhench; Editing byMichael Urquhart)