An oilfield off the coast of Caithness is expected to come on line in March and produce nearly 7,500 barrels of oil a day.

John Woods, chief developments officer for Itaca Energy (UK) Ltd, which operates the Beatrice field, confirmed that the Jacky platform and associated pipelines were installed earlier this month.

He told the John O'Groat Journal: "The jack-up drilling rig Ensco 92 is scheduled to enter the field in mid-February or early March to conduct the well work, with the field likely to come on stream in mid-March once tie-in activities and modifications to the Beatrice field have been completed.

"We anticipate significant production rates from the field of around 7,500 barrels a day."

The Jacky platform was to be installed in November and December but was delayed by bad weather.

The delays, changes in the exchange rates, and the cost of securing specialist equipment to install the rig at short notice, have put the project costs up to 24% higher than the original estimate of £59.7 million.

Ithaca is to reinstate production for the Beatrice Bravo platform as part of the Jacky development.

The Jacky field is being developed as a "normally unmanned" facility with a single well tied back to the nearby Beatrice field facilities.

Ithaca chief executive officer Iain McKendrick said: "This major milestone in the development of the Jacky field removes much of the uncertainty over the project schedule and cost.

"We now have the development facilities installed and are looking forward to the well completion activity and final tie-in work at Beatrice.

"The Jacky field is significant to Ithaca as it will add substantial cash flow over and above our already producing Beatrice field."