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T H E M A G A Z I N E F O R T H E U K O F F S H O R E O I L A N D G A S I N D U S T R Y
O
il & Gas UK’s 2015
Activity Survey
reported the discovery of
55 million barrels of oil equivalent
(boe) of technically recoverable reserves
on the UK Continental Shelf (UKCS) in
2014, with hydrocarbons found in seven
of the 14 exploration wells drilled. The
majority of the exploration wells targeted
accumulations of less than 20 million boe
and most of the discoveries were small
and some are not currently considered
to be commercially viable. Developing
these successfully will require new
technologies to improve efficiency and
reduce capital expenditure.
These figures provide an illuminating
comparison to the period from 2004
to 2008 when the sector was drilling an
average of 35 exploration wells per year
and discovering an average of around
400 million boe.
Oonagh Werngren, Oil & Gas UK’s
operations director, says: “Estimates from
the Department of Energy & Climate
Change are that between 12 and 23 billion
boe remain to be recovered from the
UKCS. And Wood Mackenzie estimates
that there are currently more than 300
discoveries without development plans
containing nearly 3.9 billion boe. So
the challenge is to unlock the remaining
exploration targets. We also need to focus
on how some of the known discoveries
could become commercially viable
developments if we are to exploit the
potential of the UKCS within the lifespan
of existing infrastructure.
“The industry needs to deepen, expand
and share its knowledge base and use
state-of-the-art seismic technology to
target untapped resources more accurately,
while at the same time finding smarter
ways to help current undeveloped marginal
discoveries become ripe for investment.”
She continues: “Stimulating the use
of the latest practices, including new
broadband seismic technology, will enable
us to acquire top quality seismic data that
penetrate deeper into the subsurface and
deliver exceptionally detailed and higher
resolution images of complex geological
structures. More widespread application
of this technology will greatly contribute
to our existing knowledge of the UKCS’
hydrocarbon resources.
“And we must re-evaluate and revisit
mature areas, working collectively to find
We must share high quality data more
effectively, make the most of new technologies and
recalibrate our collective knowledge of the basin.
“
larger targets. The last time a discovery
larger than 100 million boe was made in
traditional sandstone reservoirs was in 2008
when Culzean was discovered.
“Finally, we believe we can work together
to sharpen our focus on under-explored
or ‘frontier’ areas of the UKCS, tackle
rising exploration drilling costs, and find
cost-effective ways to improve the quantity
and quality of subsurface information
available to industry.”
Exploration drilling of new frontier areas,
such as fractured basement reservoirs in the
west of Shetlands at Lancaster in 2009 and
Whirlwind in 2011, has been encouraging.
These discoveries indicate the potential for
200 million-plus barrel accumulations of
recoverable oil.
Fractured basement comprises mostly
granite formations where hydrocarbons
have migrated along extensive fractured
networks. Sir Ian Wood’s report on the
UKCS Maximising Recovery Review
identifies it
as one of nine frontier areas with potential,
described in the review as “new plays”
(see box right).
Re-evaluate and recalibrate
The industry is taking steps to re-evaluate
and recalibrate its geological knowledge
of the UKCS. Much of this is being
undertaken through the Exploration Task
Force (ETF), which was set up in
2012 under the auspices of the
government-industry forum PILOT.