Oil firm Chevron has reached a final investment decision to develop the Alder field in the central North Sea almost 40 years after reserves were first discovered there.
It is hoped the commitment likely worth many millions of pounds will result in a significant number of new jobs in the UK.
Reports suggest some 75% of development work could be completed by UK firms.
The company, which has also picked up approval from the Department of Energy and Climate Change, said it expects first production from the area in 2016.
Vice-chairman George Kirkland said the news was an “important milestone” for Chevron, which has a 73.6% interest alongside co-venturer Conoco-Phillips.
Discovered in 1975, the field has only become operable thanks to new technology which allows exploitation of reserves in a high-temperature, high-pressure deposit in the middle of the North Sea.
It is expected that 110 million cubic feet of natural gas and 14,000 barrels of light oil condensate can be produced each day.
