Offshore staff

PERTH, Western Australia -- Innovation and technology that have revitalized oil and gas production in the UK Continental Shelf (UKCS) should help boost exploration offshore Western Australia and Victoria.

Helen Liddell, British high commissioner to Australia, told participants at the AustralAsian Oil & Gas conference and exhibition in Perth, "UKCS is a mature region, and although some have been overly hasty to write it off, look at the statistics." Liddell pointed out that last year's cumulative oil and gas production reached 36.5 Bboe, with as much as 15-20 Bboe still remaining.

"Exploration and appraisal drilling over the last three years is 50% up on the previous three, and the ratio of successful wells continues to be encouraging," Liddell she.

Accepting projections that UK would be importing 80% of its gas requirement by 2020, Liddell highlighted the UK's recent Energy Review, which identified key areas for the next round of focus in the UKCS, including brownfield and mature field developments.

In the brownfields, Liddell called for attention be paid to the smaller details � getting maintenance and reliability right, studying then sorting out over under-performing wells, and selecting the right infill wells and keeping costs down.

"This takes high skill, and it is a growing sector of the industry and one with great international application," said Liddell, pointing out that investment in matured fields has risen by over 40% over the last three years, with a similar increase in development drilling.

"When we surveyed commercial deals in 2005, it was found that there had been real improvements in behavior, including a willingness to stick to timetables, and even negotiators empowered to take decisions! There is still a way to go, there are still cases of poor communication and attempts to tie negotiations to other deals, but progress is clearly there," said Liddell.

According to Liddell, the UK industry has come back strengthened, innovative, and world class, and is ready to offer its experience to Australia.

2/21/2007