Economic Report 2018


Following acquisitions in 2017 and the first half of 2018, there is evidence of new activity picking up across a number of fields, demonstrating that the transfer of assets can be a key enabler in achieving MER and the ambition outlined within Vision 2035: • Chrysaor is aiming to maximise the potential of the Armada area. It has recommenced drilling, with the Rowan Gorilla VII contracted to a multi-well campaign. Chrysaor also picked up six new licences in the recent 30 th Licensing Round near to the Armada area, including a firm well commitment and an obligation to shoot new 3D seismic data. 32 • EnQuest is planning three new wells on the Magnus field and intends to complete a number of well interventions to improve well performance and flow rates. 33 • Neptune Energy is planning new development wells on the Cygnus field and an exploration well on a near-field target in Q3 2018. 34 • Siccar Point is exploring and appraising in the west of Shetland area, having spudded the Cambo appraisal well 35 and put plans in place for the much-anticipated Lyon exploration well along with INEOS. 36

Figure 39: Potential Increase in Production Following Acquisition in a Cross-Section of Newly Acquired Assets











Potential Increase in Annual Production in a Cross-Section of Newly Acquired Assets (Percentage Increase)


2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Source: Oil & Gas UK, OGA

Analysis by Oil & Gas UK has shown that, over the last decade, fields which have transferred ownership have seen an average increase in their productive life of five years. Within assets transferred over the last 18 months, some can be expected to have their productive life extended by more than 15 years. This demonstrates the importance of ensuring that assets are in the most appropriate hands to maximise recovery and value.

32 Energys%20interests%20in%20Armada%20Area.pdf 33 34 35 36


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