Chevron (NYSE:CVX) Cleared for Drilling Off UK, First Since BP (NYSE:BP) Spill

Chevron (NYSE:CVX) was given the okay to start offshore drilling in deep waters off the coast of Britain; the first oil company to be given clearance since the BP (NYSE:BP) oil spill.

In a decision that raised a few eyebrows, Chevron will be bringing in Halliburton (NYSE:HAL), the company that did the cement work on the Deepwater Horizon oil rig leased by BP, which plummeted into the Gulf waters after the explosion.

BP has largely blamed Halliburton for the failure of the rig because of alleged faulty cement work.

Also being hired by Chevron is Cameron International (NYSE:CAM), who provided the failed blowout preventer for the Macondo well. They're providing the blowout preventer for Chevron's drilling.

Responding to some criticism, Britain's Department of Energy and Climate Change said this:

"All lessons learnt from [BP's Macondo well] have been applied to this well and steps have been taken to prevent the specific failures on Macondo. Close scrutiny of the well will continue, by the Health and Safety Executive, by DECC, and by Chevron itself."

Some see the approval for Chevron to go forward as the first step in increasing drilling off the Shetland islands.

BP is also negotiating with the British government over permission to drill in the area.

BP (NYSE:BP) Sets Aside $19 Billion for North Sea Investment

In a hearing with British lawmakers, among other things, outgoing BP (NYSE:BP) Chief Executive Officer Tony Hayward said over the next five years the oil giant will invest up to $19 billion in the North Sea off the coast of Britain.

The drilling of a deepwater well off the Shetland Islands is scheduled for 2011.

Questions rose to BP's commitment to the region in response to the oil spill in the Gulf of Mexico. Hayward said no investment plans by the company for the North Sea have been altered.

Hayward also estimated oil and gas production from deepwater drilling will be close to 10 million barrels a day by 2020, twice what it is today.

Britain to Talk with Transocean (NYSE:RIG), BP (NYSE:BP) Over North Sea Safety

After some intense talks between oil companies and the U.S. government over the BP (NYSE:BP) oil spill, ministers of Parliament in Britain have asked Paul King, the head of North Sea operations for Transocean (NYSE:RIG), to answer questions concerning the safety of drilling in deep waters off the coast of the UK.

Also participating in the testimonies will be executives from BP (NYSE:BP).

Drilling continues close to the Shetland islands of Britain, generating concerns over the consequences if an accident were to happen in those waters.

Talks will begin next week over the issue.