Maersk Oil announced that topsides fabrication has commenced for the $4.5bn Culzean project in the North Sea.
Located about 145 miles east of Aberdeen, the Culzean is claimed to be the largest field discovered in the last decade in the UK North Sea.
The field, which can be operational for over 13 years, is planned to commence production in 2019.
The field is expected to reach peak production of 60,000-90,000 barrels of oil equivalent per day, which is about 5% of total demand in the UK, in 2020/21.
Maersk Oil chief executive Jakob Thomasen said: "When the field begins to produce in 2019, Culzean will become a key contributor to Maersk Oil’s ambition to become a Top 5 operator in the North Sea in the 2020s, and provide around 5% of UK gas demand at peak production.
"Maersk Oil and coventurers’ investment will also support employment in both the UK and Asian supply chains."
In 2015, Maersk Oil awarded a $1bn contract to Sembcorp Marine Offshore Platforms (SMOP) for the construction of the central processing facility in addition to two connecting bridges for the Culzean project.
The scope of the contract also included wellhead platform and utilities & living quarters platform topsides for the Culzean field development.
Culzean project director Martin Urquhart said: "We will be harnessing technology to develop a 21st century facility with the ability to remotely monitor critical equipment 24 hours a day, and enable offshore colleagues to access real time data and immediate technical evaluation and onshore support."
According to estimate, the field contains 250-300 million barrels of oil equivalent.
Maersk Oil, the oil and gas unit of Danish shipping company A.P. Møller-Maersk will operate the field with an ownership stake of 49.99%.
JX Nippon has 34.01% stake in the field while BP subsidiary Britoil has a 16% stake.
Image: Maersk Oil CEO Jakob Thomasen during steel-cutting ceremony for the Culzean project. Photo: courtesy of A.P. Moller – Maersk Group.