Economic Report 2018


There is expected to be a pick-up in exploration drilling activity in the second half of the year, with a number of plans and contracts already in place including:

• Equinor is planning further appraisal work on the Verbier prospect, with the intention of clarifying reserves in place – current estimates are between 25 and 150 million boe. Equinor also plans to drill the Pip and Bigfoot prospects in the second half of 2018. 10 • Siccar Point will drill the eagerly anticipated Lyon well in the west of Shetland region. 11 • Neptune Energy is planning to drill a near-field exploration well in the area around its Cygnus field. 12 • Nexen is planning further exploration and appraisal work on its Glengorm and Cragganmore prospects. 13 • There is the potential for further appraisal work on Chevron’s West Wick discovery, while Spirit Energy’s Andromeda prospect may also be drilled. 14 This activity would bring exploration and appraisal drilling up towards the forecast in Oil & Gas UK’s Business Outlook 2018 (10-12 exploration and 7-10 appraisal wells), however it is still expected that 2018 will represent a further decline in exploration and appraisal activity – a trend which needs to be reversed to achieve the basin’s potential. There are several initiatives under way to improve the competitiveness of exploration activity on the UKCS (see section 5.4).

10 11 12 13 ES%20Submission%20Information.ashx 14


Made with FlippingBook - Online Brochure Maker