STREAM OF U.K. OFFSHORE DEVELOPMENTS SEEN

Development of 57 oil and gas fields off the U.K. could win government approval during the next 2-3 years, says a report by County Natwest Woodmac, Edinburgh, Scotland. The analyst's survey of Potential projects shows oil company attention focuses on the Central U.K. North Sea, where 31 of the new developments will be. Fourteen projects are likely in the northern North Sea, 11 in the southern gas province, and one in the Irish Sea.

June 18, 1990

2 min read

Development of 57 oil and gas fields off the U.K. could win government approval during the next 2-3 years, says a report by County Natwest Woodmac, Edinburgh, Scotland.

The analyst's survey of Potential projects shows oil company attention focuses on the Central U.K. North Sea, where 31 of the new developments will be. Fourteen projects are likely in the northern North Sea, 11 in the southern gas province, and one in the Irish Sea.

A marked switch to gas/condensate development in the Central North Sea lies ahead, and the analyst says this area may account for a rising share of U.K. gas supply.

PRODUCTION, EQUIPMENT

The 57 projects will produce 3.8 billion bbl of liquids and 14.4 tcf of gas. County Natwest Woodmac says combined reserves are equal to 58% of remaining recoverable reserves from U.K. fields on stream or under development.

About 61% of the fields will be developed using conventional platforms, 26% will use subsea systems, and 13% floating production technology.

Liquids and gas will be recovered from 52% of the projects, many of which are gas/condensate developments in the Central North Sea. Of the remaining fields, 26% will be oil projects and 22% gas developments.

Combined liquid production from the projects may peak in 1996 at an average 1.2 million b/d, or about 49% of total U.K. production that year. Gas production may peak later at more than 3.1 bcf d.

Total capital spending, excluding decommissioning, is expected to be about 13.7 billion ($23.02 billion), or 2.18 ($3.66)/bbl, at 1990 prices.

In terms of equipment used, says the report, developments with floating production systems are capital intensive at 2.53 ($4.25)/bbl. Platform developments will cost 2.13 ($3.58)/bbl, subsea projects 22.32 ($3.90)/bbl.

A WORD OF CAUTION

County Natwest Woodmac says the review is an encouraging indication of the commercial prospectivity of the U.K. North Sea. However, many of the projects require gas sales contracts before money can be committed.

"The continuing fall in the gas price on offer to potential sellers and uncertainty over British Gas's contracting policies may compromise field economics and lead to delay or abandonment of a number of projects," it said.