The fortunes of the upstream business on the UK Continental Shelf (UKCS) could also be turning. Two huge discoveries have been reported over the previous eight months and a gradual upturn in drilling is anticipated within the close to time period.
First, Total in September introduced its Glendronach discover West of Shetland, which is the biggest discovery on the UKCS in a decade. The French operator encountered 42 m of internet fuel pay in a high-quality Lower Cretaceous reservoir. Recoverable sources are estimated at 250 million BOE.
Then, in January, CNOOC mentioned it made the play-opening Glengorm discovery, intersecting about 38 m of internet fuel and condensate pay within the Central North Sea. Recoverable sources there are estimated at 175 million BOE. Total can also be a associate in Glengorm
“It’s a really constructive time for exploration, particularly within the frontier West of Shetland area, which is now a key space for development,” mentioned Nick Richardson, head of exploration and new ventures on the UK Oil and Gas Authority (OGA), throughout a current podcast hosted by the business regulator that featured UK operators.
Richardson touted favorable geology, current infrastructure, friendlier regulatory and monetary regimes, and open knowledge as enticements for operators to discover the UKCS. The OGA estimates some four billion BOE but to be found from current mapped prospects on the UKCS, with a further 11 billion BOE doable from new performs. Finding prices have shrunk to $1/bbl from $9/bbl.
Mohamed-Amine Soudani, Total exploration supervisor, famous that it took Total simply 2–three years between figuring out the Glendronach prospect and drilling it, that means that fast success is feasible offshore UK. Total plans additional drilling within the space quickly.
“The nice facet about this discovery is the truth that it’s mendacity beneath the Edradour subject that Total operates within the West of Shetland. This exhibits that we will nonetheless unlock potential within the mature basin on new performs,” he mentioned.
“The nice facet as properly, business-wise, is that it’s drilled from an current manifold, permitting a really brief cycle from discovery to first fuel,” he added. “This brings worth as fast as doable, and naturally, [as] with any success case in exploration, it unlocks additional prospectively that we’re engaged on proper now.”
Glengorm had been recognized as a prospect for many years beneath earlier operators, but it surely was tough to drill, mentioned Eliza Larrett, CNOOC International common supervisor, UK exploration. “The drilling margin could be very slim within the reservoir part, so we had been relieved to get by means of that safely and efficiently to TD.”
However, not each exploration properly turns right into a discovery and never each appraisal properly reveals an enormous quantity of hydrocarbons. Equinor’s Verbier appraisal properly drilled in the course of the spring didn’t encounter the anticipated Upper Jurassic sands, and because of this, lowered the invention’s estimated useful resource potential. But Jenny Morris, Equinor head of exploration, UK and Ireland, stays upbeat on the potential of the UKCS.
“Verbier is a superb instance of what this mature basin nonetheless has to supply when it comes to stratigraphic potential,” she mentioned. “The unique properly was dry however we took that very daring resolution to sidetrack updip. There was tantalizing proof that there may very well be hydrocarbon sands updip,” and the corporate did encounter hydrocarbon-bearing sands.
“It demonstrates, notably with fashionable knowledge…there may very well be quite a bit refined stratigraphic potential left on this basin,” she added. “But, after all, it’s not straightforward. Strat traps are difficult, and as we’ve seen, the appraisal properly indicated decrease volumes than we hoped.”
Though not at all times straightforward to use, Richardson mentioned that the basin’s enchantment in the end comes right down to its geology, which has produced discoveries from all the best way down within the basement to the youngest rocks. The geologic complexity supplies alternatives for brand new ideas to be developed that may open up new performs.
Larrett mentioned the…