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North Sea oil companies have pledged to keep using Orkney's Flotta terminal for many years to come.

The facility has been in operation since 1976 and has handled billions of crude in the decades since then.

Repsol Sinopec Resources UK announced yesterday that the Golden Eagle, Piper and Claymore field owners have executed new agreements reaffirming their commitment to continue exporting oil to Flotta until end of field life in the 2030s.

Piper B and Claymore are operated by Repsol Sinopec, while Golden Eagle is operated by CNOOC.

Repsol Sinopec added: "This commitment to support the longevity of the terminal underpins a variety of growth opportunities in the wider area, including renewed drilling and several third-party tie-backs.

"All field owners have recently completed successful drilling programmes to increase production volumes and are actively engaged with a number of third parties that are considering the use of the offshore facilities."

Repsol Sinopec, along with its partners, is also exploring the opportunity to develop an industrial-scale hydrogen hub on the island of Flotta.

It would use a repurposed area of the existing terminal to create a green hydrogen hub powered by offshore wind projects to the west of Orkney.

Energy Voice has reported that 150 people are currently employed at Flotta, and hundreds more could be added due to the hydrogen plan.

Repsol Sinopec is working with renewables consortium Offshore Wind Power Limited (OWPL), which features TotalEnergies, on the proposal.

OWPL was selected to build a huge wind farm in the recent ScotWind leasing round. Funding for the project is expected to be secured this year, with first hydrogen on the slate for 2029 at the latest.

Jose Luis Munoz, chief executive of Repsol Sinopec, said yesterday: "The Flotta terminal has made a significant contribution to Orkney's economy and communities for more than 40 years.

"The renewed commitment from the Golden Eagle, Piper and Claymore field owners highlights confidence in the Flotta terminal and wider Flotta catchment area. It is our objective to continue to produce and develop existing and new field reserves in line with the North Sea Transition Authority's strategy, and with net zero ambitions front and centre of our minds."

The story of the Orkney terminal began in 1973 when the Occidental North Sea Group selected a landfall for its newly-discovered Piper field, 125 miles east of Caithness. Flotta was selected ahead of seven other possible locations and construction began in 1974 on the site.

Further crude volumes were added with the arrival of oil from the Claymore field in 1977, and peak production was reached on November 4, 1978, when the terminal processed 421,590 barrels.

The site received a new lease of life when it began providing transportation and processing services to the Golden Eagle development in 2014.

Repsol Sinopec became the major shareholder and operator of the Orkney facility in 2000.

FTSE 100

Meanwhile, the Brent crude futures price was up by 0.69% to $113.90 a barrel earlier this morning.

The UK's top share index, the FTSE 100, was down six points at 7,610.

Companies reporting today:

Finals: JTC

First-quarter results: Netflix

First-quarter production statement: Rio Tinto

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