NORTH SEA OIL PRODUCTION HEADED FOP RECORD VOLUME

North Sea oil production is set to reach record levels as new fields come on stream later this year.

Exploration and appraisal drilling, however, has fallen dramatically, with the North Sea rig count at its lowest in more than a decade.

Norwegian oil and natural gas liquids production in first half 1993 averaged 2.27 million b/d, up 5% from the same period last year. Production would have been significantly higher but for bad weather hindering tanker loading in January and February, said Wood Mackenzie Consultants Ltd., Edinburgh (OGJ, Mar. 1, p. 38).

Norwegian oil and NGL production is predicted to average 2.4 million b/d during the second half of the year, a 6% increase from second half 1992.

Wood Mackenzie expects fourth quarter production off Norway to surge past 2.6 million b/d as major new field developments, including Draugen, Brage, and East Sleipner, go on stream.

U.K. offshore oil flow averaged 1.75 million b/d for the first 6 months of 1993. Rising production from Piper and Bruce fields, which went on stream this year, and new production from Tiffany, Scott, Hudson, and Strathspey fields, will boost U.K. production in second half 1993. U.K. offshore production for the entire year is on target to average 1.9 million b/d.

Improvements in flow from the 1993 starters, along with 1994 start-ups such as Nelson field, will more than outweigh the decline in production from mature fields.

Danish oil and NGL production for the first 6 months averaged 161,000 b/d, a 3% increase from the same period in 1992. Dutch offshore oil and NGL production averaged 27,000 b/d in first half 1993, a 23% decrease from the first 6 months of 1992.

JUNE PRODUCTION

Average oil and NGL production off Norway fell 279,000 b/d from May to 2.08 million b/d in June. Scheduled maintenance in Gullfaks, Veslefrikk, and Murchison fields was mainly to blame.

June U.K. oil production averaged 1.73 million b/d, including 80,000 b/d from onshore fields. This compared with 1.8 million b/d in May. Routine maintenance in Brent, Fulmar, and Magnus fields caused the decline.

Danish oil and NGL flow rose to 165,000 b/d in June from 159,000 b/d in May. Wood Mackenzie attributed this to increased flow from Dan and Gorm fields as a result of development drilling.

Netherlands oil production continued its steady decline, sliding to 25,000 b/d in June from 27,000 b/d in May.

DRILLING

Exploration and appraisal drilling in Northwest Europe during first half 1993 sank to alarming levels, Wood Mackenzie said. At the end of June there were only 17 rigs active on E&A work in the North Sea, the lowest level in more than a decade.

Well starts were well down from the same period in 1992. The analyst reported only nine starts in the first six months of 1993 off Norway compared with 19 in first half 1992, six off Netherlands this year compared with 11, and none off Denmark compared with six.

E&A drilling fell sharply in all countries in Northwest Europe, but the shortfall in overall rig requirements off Norway and Denmark was largely offset by the relatively high level of development drilling.

In July Norway had seven rigs on development work with three on E&A, while Denmark has six rigs at work, all on development wells. U.K. had the greatest number of rigs active in July, with 12 on E&A and 29 on development.