INCREASING offshore drilling activity and improving performance are crucial to the future of the North Sea industry, according to regulator the Oil & Gas Authority (OGA).
In its first Wells Insight report, published on Wednesday, the OGA stressed that new well drilling had to be “substantially” increased, along with an improvement in performance, “to deliver the substantial UKCS reserves potential, improve well management to maximise production”.
It said more than 7800 wells had been drilled in the UKCS to date delivering over 44 million barrels of oil equivalent (mmboe).
However, exploration and appraisal (E&A) activity had been declining steadily since 2008 and the development and infilling of wells had halved since 2015 after the oil price drop. More than 600 wells, around 30% of active well stock, are currently shut-in and well surveillance and intervention rates are low at 8% and 14% respectively.
OGA operations director, Gunther Newcombe, said: “There are many examples in the report of industry delivering performance improvements and undertaking innovative approaches to well management plus there is also an indication of an upturn in new well activity ... However, there is also a need for a concerted effort by industry to substantially increase cost effective drilling activity, improve the management of existing well stock and reduce well abandonment costs to maximise reserves, sustain production and minimise decommissioning costs. This can be achieved by leveraging lessons learned, exploiting technology and working collaboratively with the supply chain to achieve transformational performance gains.”
The report came as the OGA approved Serica Energy’s 13m barrel Columbus plan – a single well connected via pipeline between the Arran field and Shell’s Shearwater platform - which is expected to produce 7800boe per day at peak.
Serica chief executive, Mitch Flegg, said: “The project team has worked closely with the OGA and the host infrastructure owners since the field development plan was submitted in June 2018 to achieve this successful outcome. The development is important in its own right and will also enhance our understanding of nearby exploration acreage which was secured by Serica in the UK 30th licence round.”
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