Dana Petroleum PLC and the Japanese upstream exploration and production company Cieco have begun detailed engineering design phase on the $1.5 billion Western Isles development project in the UK North Sea.

Oil production is expected to start in 2015 and plateau at about 40,000 b/d of oil equivalent from Harris and Barra fields, 160 km east of the Shetland Islands and 12 km west of Tern field. Field life is estimated at 15 years. Reserves are 45 million boe plus further potential.

Western Isles involves a subsea development of at least five production and four water injection wells plus two exploration wells tied back to a newbuild floating production, storage, and offloading vessel with oil export using shuttle tankers.

UK government sanction is expected towards the end of 2012, followed by award of the major contracts. Drilling is expected to begin 2013 with subsea installation in summer 2014 and FPSO installation summer 2015. Operating equity in the project with Dana holding 65% and Cieco 35%.