The field lies off the west coast of Shetland

The Clair field was discovered 24 years ago and is thought to have deposits of up to 6bn barrels of oil.

It lies in up to 150 metres of water and had long been thought of as difficult to develop.

However, recent technological advancements mean it is now seen as viable by BP, which will work with partners ChevronTexaco, Conoco, Amerada Hess and Enterprise Oil.

Mr Wilson said that there could also be development of the remaining field areas if the first phase proves successful.

"With a project value of �650m, this approval will provide a great boost for the UK," he said.

Offshore industry

"In total, Clair will create around 1,000 jobs, 850 of these in construction, and the rest offshore.

"This news demonstrates that there is a lot of potential left in the UK offshore industry, based on innovation and technology."

He said the first phase would supply up to 300m barrels of oil.

Brian Wilson announced the approval

It will focus on the Core, Graben and Horst segments in the southern area of the field.

Mr Wilson also told an audience of industry representatives at the Aberdeen Maritime Museum that the project brought the total capital investment in the North Sea to �1.5bn over the past two months.

He added that the project created an opportunity for UK yards and suppliers.

"I understand that 70% of the companies pre-qualified to bid on Clair are UK-based and they have my full support in this process," he said.