7 November, 2007

THE QUANTITY of oil flowing through Sullom Voe Terminal is expected to drop by a further 70,000 barrels a day over the next five years, it has emerged.

Members of Shetland Islands Council's harbour board will hear tomorrow (Thursday) that revised predictions for the oil terminal are making it difficult to set port charges for next year and beyond.

Current throughput, estimated to be 347,381 barrels per day (bpd), is likely to decrease to 310,982 bpd by 2011, and to 279,129 bpd in 2012.

Port manager Jim Dickson reports a significant fall in last year's oil forecast due to a predicted 20 per cent decline in oil from BP's Schiehallion field in 2009.

Captain Dickson said: "It is difficult to predict a dynamic situation such as the offshore production of oil.

"Operations can be curtailed by any number of reasons, not the least being the sheer age of equipment and the effects of severe weather."

The figures will cause concern for the SIC which funds its high standard of public service provision from the money it earns running Sullom Voe harbour.

Last week newly elected councillor Rick Nickerson called on the SIC to review its deal with the oil industry in light of the current high price of oil. Mr Nickerson said that rather than trying to save money by cutting services the council should be trying to earn more from Sullom Voe.