Dana Petroleum has set a rough date for the removal of the Western Isles floating production storage and offloading (FPSO) ship. The agreement with equity partner Neo Energy stipulates that production from the North Sea vessel will cease "on or around" March 31, 2024. Dana has submitted all the necessary disclosures and paperwork to the UK authorities to progress to this phase, and the appropriate documentation will be prepared as the decommissioning project matures. The decommissioning plan for the Western Isles FPSO was submitted to the Offshore Petroleum Regulator for Environment and Decommissioning (OPRED) in February.

The Western Isles FPSO, designed by Sevan SSP, operates in the Harris and Barra fields around 100 miles east of Shetland in the Northern North Sea. Dana Petroleum, backed by Korea National Oil Corporation, holds a 77% operated stake in the asset, while the remaining 23% is held by Neo Energy. The decommissioning process involves disconnecting the vessel from its mooring system and risers before towing it to port for cleaning and refurbishment. The vessel, built in 2017, will either be reused or sent to a licensed facility for dismantling and recycling if no reuse option is identified.

Dana's 2022 annual report revealed pre-tax profits of £371 million, a significant increase from the £22 million recorded in 2021. Revenue also rose to £839 million from £298 million the previous year, benefiting from sustained high oil and gas prices. However, the introduction of the government's energy profits levy, known as the North Sea windfall tax, impacted the company. Dana had to contend with a headline levy rate of 75%, resulting in an additional windfall tax charge of £212 million for 2022.

The improved results were also due to production from the Tolmount field, where first gas was achieved in April 2022. Dana is a 50% partner alongside operator Harbour Energy in the Southern North Sea gas development. The company plans to further develop the region through Tolmount East, a tie-back to the existing platform. A development well was completed at the extension, and Dana is on track to start production in late Q4 2023 or early Q1 2024. Additionally, Dana has committed to drilling two further UK prospects this year, namely Earn and K2, with the latter operated by Ithaca Energy.