Category Archives: Industry News

Industry News, North Sea

INDUSTRY NEWS: OGA exploration licence competition makes final awards

Leave a comment

 

The Oil and Gas Authority (OGA) has awarded more than £200,000 in the final stage of its exploration licence competition which was launched earlier this year to stimulate further interest in offshore oil and gas exploration activity in the United Kingdom Continental Shelf (UKCS).

Australian privately owned geoscience company FROGTECH, not-for-profit earth sciences consultancy Geoscience Wales and private company Geop4ysics Ltd. will now complete their innovative interpretations and products using data acquired during last year’s UK Government funded £20m seismic survey of the Rockall Trough and Mid-North Sea High (MNSH) areas.

FROGTECH, based in Canberra, Australia, has approached the project utilising their SEEBASE™ product (Structurally Enhanced view of Economic BASEment). They will produce a unique, hand-contoured depth-to-basement model of the Rockall and MNSH areas which will provide greater insight into the foundation of the geological basement, rather than relying on more traditional gravity inversion methods. Additional deliverables include the interpretation of basement terranes, major structures and basement-derived heat flow.

Geoscience Wales’ project is being completed by six of their associates, industry professionals from across the UK, many of whom have worked on the MNSH area throughout their careers. Their primary aim is to document the potential effective petroleum systems present within the area with a strong focus on source rock geochemistry and basin modelling.

Kinga Wroblewska, owner of Geop4ysics Ltd., set up her company in March this year after spending more than 17 years’ working for various oil and gas service companies in the geoscience sector. Her project will integrate rock physics into the overall interpretation of the MNSH data set. The aim of this is to identify lithological variations and use these to help define the extent of both potential and known reservoir units.

Gunther Newcombe, OGA Exploration, Production and Decommissioning Director, said: “Despite the global downturn in the oil and gas industry, the overwhelmingly positive response to this competition highlights the tenacity and talent of the global geoscience community…All the projects submitted will provide greater insight into our understanding of the Rockall Trough and Mid-North Sea High areas, while adding value to our evaluation of 29th Offshore Licensing Round applications…Given the high quality of the technical work delivered by all applicants, there is also the option for products to be integrated into other OGA exploration initiatives, such as the production of regional geological maps, to proactively influence and incentivise exploration on the UKCS.”

The OGA’s exploration licence competition launched in March 2016 and attracted more than 60 applications from the UK, Canada, USA, Australia and Europe. It was designed to encourage geoscientists to develop innovative interpretations and products using the data acquired from the Rockall Trough and MNSH areas and to increase the understanding of these frontier areas ahead of the 29th Seaward Licensing Round which opened last month.

In the news this week..., Industry News

OGA Data Release

Leave a comment

The Oil & Gas Authority has released almost 40,000 line kilometres of new and legacy seismic data acquired during last year’s successful £20 million Government-funded seismic survey of the Rockall Basin and Mid-North Sea High (MSNH) area.

The data package includes processed seismic data from the 2015 surveys as well as legacy data, Gravity and Magnetic maps and Well data. It has been published via the Common Data Access UKOilandGasData portal www.ukoilandgasdata.com. Data packages under 20GB in size may be downloaded for free, while larger data packages will be available on media only, for which a charge will be made to cover media, handling, and delivery costs.

The data release was welcomed by Deirdre Michie, Oil & Gas UK’s chief executive. She said: “We welcome the news that the Oil and Gas Authority is now releasing into the public domain the substantial volume of seismic data from the UK government-funded surveys. This marks a milestone in the collective efforts to re-energise exploration activity on the UK Continental Shelf (UKCS). The OGA is publishing the data via the UKOilandGasData.com portal, the industry’s shared data management service operated by Common Data Access (CDA), a subsidiary of Oil & Gas UK.

“There is a comprehensive array of information available, including both newly acquired and legacy seismic data plus gravity and magnetic maps and well data. It represents a new dimension in both the quantity and quality of subsurface data available in these frontier areas, which should help stimulate further interest in the forthcoming 29th Licence Round. Record numbers of organisations both in the UKCS and overseas have already registered an interest in downloading the data and it is a testament to the focus and hard work of many individuals that the project has been delivered so effectively.

“The industry recognises the government’s commitment to stimulating exploration in the UKCS, where we believe billions of barrels of oil and gas are yet to be recovered. The government is making an additional £20 million available to fund new seismic data acquisition this year for release in 2017 and this is also very much to be welcomed. The industry is working with the OGA to help identify the priority areas where the new data should be acquired.  The results from these surveys will again be made available to the wider industry and academia.”

WesternGeco, a Schlumberger company, was awarded the seismic contract in July 2015 and all three seismic vessels – Vespucci, Tasman and Regent – were in the field later that month. The latest seismic acquisition and processing technologies were used to enhance subsurface imaging and help improve understanding of the geology and potential prospectivity.

The OGA is currently preparing for the 29th Licensing Round which, subject to the necessary regulatory approvals, will be announced later in 2016 focusing on under explored Frontier areas using the data from the seismic campaign. In January 2016, the Prime Minister announced a further £20 million seismic survey campaign. OGA has begun consulting with industry on areas to be covered with initial interest being shown in the East Irish Sea Basin, South Celtic Sea, South West Approaches Basin and Orcadian Basin. The focus on under-explored frontier areas allows modern exploration techniques and ideas to be applied to regions that have received minimal attention for decades.

In the news this week..., Industry News

Oil & Gas UK’s Activity Survey 2016 released last week 

Leave a comment

Oil & Gas UK’s Activity Survey 2016, published on 23 February 2016, reveals that while the industry’s drive to improve efficiency, reduce operating costs and increase production has had marked success, exploration remains at an all-time low and investment in new projects is set to fall to less than £1 billion this year. The report highlights the urgent need for fiscal reform to attract investment back into the basin and minimise loss of capacity during the downturn.

Around 500 delegates turned out to hear at first-hand the findings from the report at five briefings held across the last week in February in Aberdeen, London, Inverness, Newcastle and Norwich.

The full report is available online

Aberdeen, In the news this week..., Industry News, North Sea

Oil & Gas UK Press Release: Oil & Gas UK welcomes Prime Minister’s support for industry and City Deal

1 Comment

Deirdre Michie, chief executive of Oil & Gas UK, said: “We very much welcome Prime Minister David Cameron’s visit to Aberdeen and his recognition of the seriousness of our situation.  His announcement today of a £250 million fund for the Aberdeen Region City Deal, coupled with the matched funding from the Scottish Government, is a much needed positive step forward for north east Scotland and will benefit our sector more widely.

“While the oil and gas sector is under severe pressure globally, due to the current oil glut and price collapse, it is being felt particularly forcefully on the UK Continental Shelf (UKCS), which is a mature basin with its own particular difficulties and cost challenges.

“Companies are doing all they can to bring down costs and be more efficient, but many are still having to make difficult decisions. Support from both the UK and Scottish Governments, the Oil and Gas Authority and local authorities is vital so it is extremely timely that the Deal will see co-operation between these parties.

“The UKCS needs to restore its competitiveness and attractiveness as a place to do business. Without that, industry won’t be able to maximise recovery of resources – the billions of barrels of oil and gas that still remain in the North Sea.

“Aberdeen and the north-east of Scotland have to compete with international energy hubs such as Houston and Dubai. Investing in infrastructure and innovation here, particularly through the new energy innovation centre, is a hugely positive move which will further cement Aberdeen’s position as Europe’s oil capital, at the heart of the UK ‘offer’ to the global oil and gas supply chain.

Deirdre Michie also welcomed the new ministerial group on oil and gas, chaired by Energy and Climate Change Secretary, Amber Rudd: “Senior level, co-ordinated engagement from Government to support the industry and those who work in it is very encouraging. The group’s focus on exports, skills and investment is highly relevant in today’s climate and Oil & Gas UK stands ready to engage with it on its workforce plan in the Spring.”

Deirdre Michie concluded: “Today’s developments are good news for our industry but our efforts must go on. Industry needs to continue to work with the Oil and Gas Authority to ensure we have a world class regulatory regime, and with Treasury, through their ‘Driving Investment Strategy’, to ensure we have the most appropriate fiscal regime possible.

“Despite our difficulties, this is still very much an industry with future, capable of playing a critical role in meeting the UK’s energy needs, bolstering the UK economy and supporting hundreds of thousands of UK jobs.”

Have Your Say, Industry News

Have Your Say: The Energy Bill 2015/16

Leave a comment

Oil & Gas UK released the following statement in relation to the Energy Bill that was introduced into the House of Lords last Thursday:

“The OGA is a critical catalyst for the work being done to sustain offshore oil and gas activity and the Bill aims to provide the new regulator with the tools and capabilities it will need to do the job effectively and efficiently…The commissioning of the Wood Review and implementation of its recommendations, along with the tax changes announced in this year’s Budgets, lay strong foundations for the regeneration of the UK North Sea. Big strides are being made by industry to improve the efficiency and reduce the cost of operations with average lifting costs anticipated to fall as a result over the next twelve months. The focus of the industry now is to continue that work while maintaining comprehensive engagement with the OGA and HM Treasury.”

The Energy Bill 2015/16 is available here.

What are your thoughts on the new Energy Bill?