Parkmead has taken the decision to push ahead with the much-anticipated Skerryvore field in the UK North Sea.
Industry regulator the North Sea Transition Authority has given the Aberdeen company the green light to enter the next phase of the licence and drill the high-impact prospect.
A geotechnical work programme carried out at Skerryvore has confirmed the "considerable multi-interval potential" of the project, Parkmead said.
Energy Voice says the planned well will target two main stacked exploration prospects, which studies indicate could contain 157million barrels of oil equivalent in the most likely case.
Skerryvore has been waiting for some time to get off the ground, with Parkmead having previously said it was seeking to drill back in 2015.
The licence also contains additional prospects at the Ekofisk and Jurassic levels and a successful discovery could be tied into existing and planned infrastructure nearby.
Parkmead has also reached agreement to increase its stake in the Skerryvore project from 30% to 50%.
Tom Cross, Parkmead Executive Chairman, said: “Parkmead’s technical team has made significant progress on the licences held by the Company and the decision to proceed with drilling the Skerryvore prospects is a major milestone.
"Parkmead will continue to evaluate the exploration potential of other licences it holds. We are seeing renewed UK government interest in the North Sea, as it seeks to bolster energy security, and we are excited by the opportunities that exist within our assets in this prolific region.
"Increasing our stake in Skerryvore comes on the back of delivering record gas revenues this year in the Netherlands.
"We will continue to focus on building a portfolio of high-quality energy projects through acquisitions, organic growth and the active management of our assets across all energy sectors.”