Oil giant BP (BP.L) is to invest £3 billion in developing the Schiehallion and Loyal oil fields in the Shetland Isles.

The development - to take place alongside co-venturers - is set to realise a further 450 million barrels of oil in the oil fields and extend production until 2035.

Trevor Garlick, regional president for BP's North Sea business, said the move was part of its strategy to sustain a 'high quality business in the North Sea regfion'.

He said, 'The Schiehallion and Loyal oil fields are established assets with a strong future - and we and our co-venturers are taking some significant steps to maximise the greater potential we now see in these fields.'

The investment will involve upgrading and replacement of the subsea and will see the existing Schiehallion Floating, Production, Storage and Offloading vessel replaced.

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