Economic Report 2018

Figure 13: UKCS Drilling Activity

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Total Wells Drilled per Year

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2016

In addition, four exploration wells and five appraisal wells were spudded in the first eight months of the year. This compares with five exploration wells and one appraisal well in the first half of 2017, and a total of 23 exploration and appraisal wells across the whole of last year. The 2017 figure represented a decline of more than 50 per cent on just five years ago. Unless this trend is reversed in the near-term future, the UKCS will be at risk of not realising the potential of the basin (see section 5.4). This will affect the ability of industry to meet the aspirations outlined in Vision 2035 as the hopper of prospects ready to progress to FID decreases. Despite the low levels of activity, total discovered volumes have increased in the last two years, with more than 700 million boe discovered across 2016-17. Although this was due to a small number of large discoveries west of Shetland, this figure represents almost the same amount as the period 2008-15 combined. There have also been successes recorded by the wells spudded so far in 2018, with Apache announcing a 10 million boe discovery at the Garten field in the Beryl area, as well as early indications that the Cambo appraisal well drilled by Siccar Point Energy has been positive. Total E&P UK is also continuing to review the results of its Glendronnach well in the west of Shetland area. Cairn Energy spudded the Ekland exploration well in July and Zennor Petroleum has begun further appraisal activity on the Finlaggan prospect, with the intention of moving towards development of the field. Azinor Catalyst has also spudded the Plantain exploration well and will look to follow this with a contingent sidetrack to appraise the Agar discovery.

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