TAQA said the initial phase of development will involve two producer wells and one injection well.
Cladhan field, which is expected to begin first oil production in the first quarter of 2015, is estimated to produce over 17,000 boe/d initially.
The company will tie back the production to its Tern Alpha platform, which is located 17.5km northeast of the Cladhan field.
Oil production from the two producers will be combined with the other fields production routed over the Tern platform, and exported to Sullom Voe through the Brent Oil Line.
Tern Alpha is a fixed installation, which serves as a manned drilling and production installation for the Tern field in block 210/25 in the East Shetland Basin of the northern North Sea.
The platform also serves as a production facility for the Hudson and Kestrel fields.