OIL exploration firm Hurricane Energy has made what it describes as the “largest undeveloped discovery” of oil in UK waters 60 miles west of Shetland.

The company said one billion barrels of oil could be contained in the Greater Lancaster field, which had been expanded to include the Halifax well, where exploratory work has determined that the two areas form a large connected one.

CEO Dr Robert Grice said: “This is a highly significant moment for Hurricane and I am delighted that the Halifax Well results support the Company’s view that its substantial Lancaster discovery has been extended to include the Halifax licence.

“We believe that the Greater Lancaster area is a single hydrocarbon accumulation, making it the largest undeveloped discovery on the UK Continental Shelf.

“The discovery of a 1km hydrocarbon column at Halifax validates the efforts the company undertook to acquire the license and drill, test and log the Halifax well through the winter months.”

The company hopes to begin production in 2019.