Close Video

Offshore Europe hears of renewed optimism in North Sea

06 September 2017

The UK’s North Sea oil and gas industry is on track to record its biggest year for field start-ups in a decade, according to a report published at the Offshore Europe conference and exhibition in Aberdeen.

Oil and gas hits new high in North Sea

The report from consultants Wood Mackenzie said that 14 projects with a combined peak production of 230,000 barrels of oil equivalent per day (bpd) will start in the zone this year – the most since 2007.

Mhairidh Evans, senior research analyst for North Sea upstream at Wood Mackenzie, said, “It’s really the fruits of a very high level of investment in the 2010 to 2014 period. Really, 2017 is the last year of that tranche of projects.” Eight fields have already started up this year with an estimated peak production of 140,000 bpd. Wood Mackenzie said that, most recently, Total had announced the start of its Edradour and Glenlivet fields in west of the Shetland Islands, which will add as much as 56,000 bpd at their peak.

In a separate report from the industry body Oil & Gas UK said that almost $6 billion-worth of mergers and acquisitions had taken place in the sector in the first half of the year, despite continuing difficulties in the market.

The organisation’s Economic Report 2017, issued at Offshore Europe, said the UK industry was reinventing itself by differentiating itself from competing oil and gas regions with efficiency gains, fiscal competitiveness and a world-class supply chain. Production had increased by 16 per cent since 2014 thanks to these efficiencies and new start-ups, the report said.

Source

Back to news