New North Sea oil field found

A newly discovered North Sea oil field could be the biggest find in the area for 14 years, it was revealed today.

The Buzzard Field, 60 miles north-east of Aberdeen, was first drilled last summer, when PanCanadian Energy calculated it could recover up to 300 million barrels of oil. But the company now says further test drilling has shown the oil reservoir is larger than previously thought and could yield 400 million barrels.

The announcement was welcomed by energy minister Brian Wilson, who said: "This is a prime example of why we are working so hard with industry to get offshore blocks in the hands of the right operators.

"This is the biggest North Sea discovery since the Nelson Field in 1988 and confirms that there are still huge prizes to be won."

PanCanadian said it was continuing its appraisal of the Buzzard Field and estimates of how much could be recovered might rise further. The appraisal should be completed by the summer, when the company will begin deciding how to exploit the oil.

Alan Booth, managing director of the firm's London-based arm, PanCanadian Energy (UK) Ltd, said: "These results confirm our long-held belief that the United Kingdom Central North Sea still holds significant rewards for companies committed to exploring in this prolific basin."

PanCanadian Energy owns 40 per cent of the field, in partnership with Intrepid Energy North Sea, which owns 30 per cent, British Gas (20 per cent) and Edinburgh Oil & Gas (5 per cent).