Offshore staff

ABERDEEN, UK – The Oil and Gas Authority (OGA) has published its first Wells Insight report, after two years of compiling and verifying data on drilling across the UK continental shelf (UKCS).

Main findings include:

• Over 7,800 wells drilled on the UKCS to date have delivered over 44 MMboe.

• E&A well activity falling steadily since 2008; development and infill well activity halved since 2015 following the oil price fall.

• Well cost reductions in recent years primarily due to lower rig and service rates rather than improved performance, with non-productive time (NPT) above 15%.

• Over 600 wells (around 30% of existing active well stock) currently shut-in; well surveillance and intervention rates are low at respectively 8% and 14%.

• Well abandonment activity has quadrupled since 2016 with a similar increase predicted going forward (over 150 wells/yr to be P&A’d).

• At present there are 240 suspended E&A wells that require permanent abandonment, with 12 operators holding 70% of the well stock.

OGA’s Director of Operations Gunther Newcombe said: “There are many examples in the report of industry delivering performance improvements and undertaking innovative approaches to well management plus there is also an indication of an upturn in new well activity, all of which are positive indicators.

“However, there is also a need for a concerted effort by industry to substantially increase cost effective drilling activity, improve the management of existing well stock and reduce well abandonment costs to maximize reserves, sustain production and minimize decommissioning costs .

“This can be achieved by leveraging lessons learned, exploiting technology and working collaboratively with the supply chain to achieve transformational performance gains.”

Oil & Gas UK Upstream Policy Director Mike Tholen added: “The OGA’s Well Insight report highlights opportunities for companies to utilize new technology and build upon the efficiency and performance improvements it has made as it continues to emerge from the downturn.

“Oil & Gas UK’s Competitive Well Delivery initiative is helping efforts by sharing lessons learned and identifying opportunities to work together across the basin. This collaborative approach to delivering effective and fit for purpose wells activity will allow us to unlock the challenges of drilling in the UKCS, ultimately adding a generation of productive life to the basin as set out in Vision 2035.”

Next year the OGA plans to publish a wells strategy, detailing its new wells stewardship expectations, and a lessons-learned report in support of the industry.

10/30/2018