The company will develop two discovered oil fields called Harris and Barra in the Northern North Sea, which will include nine-well.
A total of 26,000 barrels of oil equivalent will be added to the company production.

Dana Petroleum managing director UK Paul Griffin said the company intends to double daily production to 100,000 barrels of oil equivalent by 2016.

"Work on the detailed engineering design will begin immediately and the project is expected to receive full approval from the UK Government towards the end of 2012, with first oil production expected in 2015," said Griffin.

UK Minister of State for Energy and Climate Change Charles Hendry said, "I’m delighted that Dana has demonstrated its commitment to the UK North Sea and we look forward to receiving the final development proposals."

Recoverable oil reserves of 45million barrels are estimated in the Harris and Barra fields.
Dana Petroleum holds 65% interest in the Western Isles development project while Cieco holds the remaining 35%.