promoting the exploration potential of the ukcs · exploration storyboard (as appropriate) oga has...
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Gunther Newcombe
Director, Exploration and Production
Oil and Gas Authority
Promoting the Exploration Potential of the UKCS
Exploration
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Promoting Exploration Potential of UKCS
OGUK Conference, June 2016
Gunther Newcombe (Director , Exploration & Production)
PROTECTIVE MARKING(as appropriate)Exploration Storyboard
OGA has a clear plan to promote & revitalize exploration in UKCS
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Purpose To revitalise exploration in the UKCS in order to add reserves to replace production and secure
longevity of the North Sea
Priorities• Promote exploration potential & improve technical understanding
• Optimize licensing approach to maximise frontier and mature potential
• Incentivize exploration through a combination of fiscal and non-fiscal initiatives
MembersRon Roberts (Apache) Ruud Zoon (GDF) Tom Dreyer (Statoil)
Chuck Guderjahn (BP) Roberto Cerro (ENI) Ben Hillier (Shell)
Jon Parry (DONG) Mike Tholen (OGUK)
Industry lead Phil Kirk (Chrysaor) Support lead Gunther Newcombe (OGA)
Progress update
MERUK Exploration Board
• Licensing strategy task group developed Innovate Licence Approach 1Q 2016
• Seismic Industry Group data acquisition proposal 2Q 2016
• Developing framework for 2016 UKCS geotechnical study
Tripartite approach to promoting & revitalizing exploration
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OGA Monthly Performance Pack 2015Significant additional potential in mature areas
Mature Yet-to-Findc
NNS
WOS
SNS
OGA Data Base
CNS
NNS
WOS
SNS
Number of Wells
NNS
CNS
WOS
SNS
9 bnboe
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MustardBoatswain Callater
CoronaDrumtochty
Dalziel
CorfeSeagull
Appraisal Wells
Exploration Wells
Oil Discoveries
UKCS 2015 Discoveries
2015 Technical Success Rate 60%, $6/boe finding cost with 150mmboeOGA Data Base
Gas Discoveries
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20
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Sillimanite
• High well cost, mis-alignment & funding
• OGA actively promoting exploration and engaging investor
community
• Well costs being worked by industry task force
• OGA working near term issues such as regional exploration focus
with operators, JV mis-alignment, farm-outs and rig market
• Industry 3D seismic group shoot proposal being worked
• Discussions ongoing with government
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OGA Competition to Define Potential
• £1m prize money shared between 2015 & 2016
New World-Class Visualization Facility
• £700,000 funding for Lyell Centre in Edinburgh
Post-Doctoral Appointments
• £750,000 for three post-doctoral appointments (Durham,
Aberdeen & Herriott Watt) in geoscience and reservoir
engineering
2015 & 2016 Seismic Acquisition Programs
• £40m UK government funding seeking to promote underexplored
areas of UKCS
The UKCS North Sea also has significant frontier potential
Frontier Exploration6
Geotechnical Studies
• Post well analysis OMF completed end 2015
• Palaeozoic study completed May 2016
• Developing West Britain & Orcadian study 2016
PROTECTIVE MARKING(as appropriate)Offshore Licensing Rounds
29th Round will focus on under-explored areas
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PROTECTIVE MARKING(as appropriate)Innovate Licence
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Developed by industry for industry
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Core 6500 km
Ext 4000 km
New Seismic
West Britain
Core 6100 km
Ext 5500 km
New Seismic
Orcadian
2016 Seismic ProgrammeReprocessing
Key Areas
40 – 70,000 kms
Geotechnical studies complement new & reprocessed seismic
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• OGA working closely with Industry & Government to
revitalize exploration
OGA Monthly Performance Pack 2015
Key Messages
The UKCS North Sea has both mature and frontier potential
• Considerable potential remains in both mature and frontier
areas of UKCS North Sea
• Government seismic programme & associated studies
aimed at unlocking frontier potential
• Challenge on industry to increase seismic coverage &
exploration drilling in UKCS
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