* Holds 200-300 mln barrels of recoverable oil
* Expected to cost up to $7 bln
* Says plans to simplify project, reduce cost
OSLO, Nov 22 (Reuters) - Norwegian oil and gas firm Statoil has delayed the development of its Bressay heavy oilfield in the UK North Sea, hoping to simplify the project andreduce its costs, a spokesman said on Friday.
Bressay, thought to contain between 200 million and 300million barrels of recoverable oil, was expected to cost up to$7 billion, a relatively high figure because of difficultconditions.
However, well data from the nearby Bentley field, which hassimilar geology, has indicated potential to simplify thedevelopment concept, reduce the number of wells required andmake it cheaper, spokesman Knut Rostad said.
"Statoil has, based on the recommendation from the Bressaylicence group, decided to reconsider the development concept anddelayed the field development decision," Rostad said.
Statoil earlier said it aimed for first oil in the firstquarter of 2018 and for Bressay to operate for 30 years.
Rostad said work on the nearby Mariner field, which hasaround 250 million barrels of recoverable oil, was unaffectedand the $7 billion project was moving ahead.
Oil firms have delayed and cancelled projects around theglobe this year, hoping to reduce costs and save cash fordividends. Statoil delayed its $15.5 billion Johan Castbergearlier this year due to rising costs.
Bressay, discovered in 1976, laid dormant for decadesbecause it was too expensive to develop but Statoil revisitedthe project, along with Mariner, after technological advancesreduced costs.
The field's development proposal includes drilling more than70 wells, and the installation of a production, drilling andaccommodation platform. It also envisioned a floating storageand offloading unit and pipelines.
Statoil operates the field and holds about 81.6 percent ofthe licence, while Royal Dutch Shell holds the rest.