Oil and gas giant Statoil has reported an oil discovery in the outer Moray Firth near Scotland.

The Norwegian energy firm said the discovery, in the Verbier sidetrack well on the UK Continental Shelf, could contain anywhere between 25 and 130 million barrels of oil.

Jez Averty, senior vice president Exploration in Norway and the UK, said the find was an "encouraging result" for Statoil and its UK team.

"We have proven oil in good quality sands with good reservoir properties, but significant work remains, most likely including appraisal, to clarify the recoverable volumes and to refine this range," he said.

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Jenny Morris, vice president for Exploration in the UK, added: "The results show that we made the right decision to sidetrack the well and this discovery proves that there could be significant remaining potential in this mature basin.

"Our aim this summer was to develop Statoil's UK position through testing three independent prospects ranging in geological risk and with a potential impact on our portfolio.

"Whilst the results of the other two exploration wells were disappointing, we are convinced of the remaining, high-value potential on the UK continental shelf and the Verbier result certainly gives us the confidence and determination to continue our exploration efforts."

Image: The Transocean Spitsbergen drilling rig (credit: Kenneth Engelsvold).

(LM)