UK 'Robust Uptick' in 2018 Upstream FIDs: Rystad

Thirteen UK fields are expected to be sanctioned in 2018, versus only four UK fields gaining approval during the past two years, according to research from Norway-based Rystad Energy January 30 that foresees a “robust uptick” in how many field developments reach final investment decision (FID) this year.

Among the largest UK fields taking FID this year is the Shell-operated Penguins redevelopment including recoverable reserves of just under 100mn barrels of oil equivalent, including some gas for export. Announced mid-January, Wood Mackenzie called Penguins “the largest FID since Culzean in August 2015”; the Maersk Oil-operated Culzean gas/condensate development is expected to start up 2019.

Rystad adds that, whereas four UK projects that received FIDs in 2016 and 2017 represented some 123 mn boe (including the cross-border Utgard field, with most of its reserves on the Norwegian side), the 13 FIDs it projects in 2018 represent about 550mn boe. “The trend is unambiguous,” it remarks. Many are oil fields, including the next phase of CNOOC/Nexen’s Buzzard, Decipher Energy’s Orlando, and Alpha Petroleum's Cheviot fields. But Rystad also says that UK-based Independent Oil & Gas "hopes to hand out a series of platforms to develop several gas fields."

BP meanwhile announced January 31 two new UK oil discoveries: Capercaillie, in block 29/4e in the Central North Sea (100% BP-owned); and Achmelvich in block 206/9b west of Shetland (BP as operator 52.6%, Shell 28% and Chevron 19.4%). It did not give reserve estimates but indicated both are commercial, with Capercaillie able to be tied back to existing infrastructure.