Investments could prolong UK offshore production, report finds

Britain could continue offshore oil and gas production for the next two decades and possibly longer, according to a new report by the Oil & Gas Authority.

Offshore staff

LONDON – Britain could continue offshore oil and gas production for the next two decades and possibly longer, according to a new report by the Oil & Gas Authority (OGA).

“UK Oil and Gas: Reserves and Resources” estimates remaining recoverable reserves and resources in the range of 10-20 Bboe.

Other findings of the report include:

• 43.5 Bboe produced to date from the UK and UK continental shelf (UKCS)

• Probable reserves at present of around 5.7 Bboe, sufficient to sustain production for 20 years, without taking into account future exploration results

• These reserves could also be boosted by maturing the UK’s contingent (proven but undeveloped) resources of 7.4 Bboe, much of which is in mature developed areas. This will require substantial investment in new field developments and incremental projects

• Last year UK fields produced around 600 MMboe, but only 80 MMboe of contingent resources were matured to reserves

• Exploration in 2016 helped add 210 MMboe to the contingent resources

• OGA estimates the UK’s undiscovered resources at 6 Bboe.

Operations director Gunther Newcombe said: “The OGA has an important role in helping to steward this resource base, revitalize exploration, and maximize economic recovery, working closely with industry and government.

“Future success of the basin requires attracting additional investment, implementing technology and company collaboration on new and existing developments.”

Figures for developed fields and development projects under discussion were compiled from data provided by operators via the OGA’s annual UKCS Asset Stewardship Survey.

This covered 326 producing fields; 22 projects where a field development plan (FDP) was approved but production had not started; and 31 other projects where FDPs were under discussion at the end of 2016.

10/31/2017

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