UK offshore production, opex costs stabilizing

Oil and gas production offshore the UK during 2016-2050 could total 11.7 Bboe, according to a report from the Oil & Gas Authority.

Offshore staff

LONDON – Oil and gas production offshore the UK during 2016-2050 could total 11.7 Bboe, according to a report from the Oil & Gas Authority (OGA).

This figure is 2.8 Bboe higher than the volume anticipated without implementation of the recommendations of the2014 Wood Review, to maximize the UK’s remaining offshore hydrocarbon resources.

Results of the OGA’s 2017 annual Stewardship Survey, which were incorporated into the new “Projections of UK Oil and Gas Production and Expenditure” report, suggested UK production is at its highest level since 2011 and will likely rise again this year as further new fields come onstream.

In 2017, the estimated production was 1.63 MMboe/d, similar to 2016, and would have been higher without the unexpected temporary closure of theForties pipeline system in December.

Other findings of the report include:

  • Capex fell significantly for the third consecutive year and is expected to continue declining for the foreseeable future.
  • Totaloperating costs (opex) are 27% below the 2014 high, despite rising slightly last year. After 2018, opex will stabilize to what is now considered a more sustainable level. 
  • Decommissioning costs rose 4% in 2017 and are set to remain at around current levels in the mid-term, with the latest projected figures to 2022 being slightly down on the previous estimate.

The OGA’s chief executive Dr. Andy Samuel said: “The extra 2.8 Bboe shows the future potential of the basin which could be boosted further through investment and exploration successes.”

03/02/2018

More in Regional Reports