Oil & Gas UK has welcomed yesterday’s announcement (October 23) of a new discovery in the UK Central North Sea (CNS) by GDF SUEZ E&P Ltd and BP.
Oil & Gas UK says it is a great example of two companies coming together and collaborating to better understand the exploration opportunities that remain within this vital sector of the UK Continental Shelf (UKCS).
Oil & Gas UK’s operations director, Oonagh Werngren MBE commented:
“At a time when exploration in the UKCS is facing severe investment and cost pressures it is heartening to see two UK explorers apply their expertise to understand the risks of the CNS and demonstrate that there are still significant economic plays to be developed within the basin.
“Going forward, the UKCS needs to secure substantial investment and increase exploration and this will come both through an improved fiscal regime and better technical understanding of the basin.
Werngren further notes that, “The CNS has also been identified as an area of special economic interest, with the greatest potential for rejuvenation across the whole UKCS. It is under the focus of the Government industry forum, PILOT, whose infrastructure rejuvenation work group is looking at ways to increase collaboration to ensure that infrastructure hubs critical to maximising economic recovery of oil and gas are accessible and fit for purpose for the long term future of the industry. Importantly, these principles also mirror those outlined by Sir Ian Wood in his review of the industry.
“To ensure the pipeline of new developments continue to flow from the UKCS, Oil & Gas UK believes that full implementation of Sir Ian Wood’s recommendations for regulatory reform, and far-sighted changes to the fiscal regime, are needed urgently. The offshore oil and gas industry must also improve its efficiency and reduce its costs as a matter of utmost importance to allow our region to compete in the global marketplace,” Werngren says.
“Oil & Gas UK welcomes Business and Energy Minister Matthew Hancock’s comments on today’s announcement, which highlight the government’s determination to put in place the right fiscal and regulatory regimes for this industry. Given the significant potential remaining in the CNS and across the UKCS, we look forward to working with the minister to achieve maximum economic recovery.”