Energy Firms Partner to Cut Costs in the North Sea
Petrofac, Faroe Petroleum and Eni Hewett have established a cost-saving partnership to drive efficiencies and commercial synergies across U.K. operations in the Southern North Sea. The tripartite agreement sees collaboration between Petrofac (Duty Holder) and the respective equity owners and operators of the Hewett, Schooner and Ketch gas fields to share logistics and accommodation services across the facilities. Faroe Petroleum is operator and 60 percent equity holder in the Schooner and Ketch fields…
North Sea Decommissioning Costs Weigh on Oil Firms
M&A in ageing North Sea stagnant after oil price drop; removing decommissioning costs could spark deal making. Oil firms trying to sell ageing North Sea oilfields are considering shouldering hundreds of millions of dollars in future dismantling costs to help find buyers, industry sources say. One of the world's oldest and most important offshore oil and gas production basins, the UK North Sea faces dwindling output and a growing number of redundant platforms that require decommissioning in a scale and complexity never seen before.
O&G Research to Show Collaborative Way Forward
A new piece of research could help the oil and gas industry understand and implement greater collaboration in the North Sea, as the sector continues to manage lower oil prices. Business advisory firm Deloitte yesterday (Tuesday 30 June) launched its inaugural oil and gas collaboration survey, with support from Oil & Gas UK. The research will assess the level and quality of collaboration currently taking place on the United Kingdom Continental Shelf (UKCS)…
Deloitte : Investment Crucial for UKCS
The North Sea needs continued investment from businesses and government through its current period of transition, according to a new report from Deloitte, the business advisory firm. Deloitte’s Petroleum Services Group’s latest North West Europe Review, which details drilling, licensing, and deal activity across the region for the whole of 2014, follows a year of change on the United Kingdom Continental Shelf (UKCS), along with volatility in commodity prices over the last five months.
Britain Promises Oil Industry Tax Cuts
The British government promised its oil and gas industry on Thursday that it would cut tax rates in the sector to help dampen spiralling costs. UK North Sea oil and gas output, worth around 5 billion pounds a year to government coffers, has declined rapidly as resources run low and costs to develop and operate fields surge. The government concluded in a review published on Thursday that it would have to reduce taxes imposed on the…
Samuel to head UK Oil & Gas Authority
Samuel now head of exploration and production at BG Group. New regulator to foster more govt, industry collaboration. BG Group's Andy Samuel has been named chief executive officer of Britain's new Oil & Gas Authority (OGA), the Department of Energy and Climate Change (DECC) said on Thursday. The OGA is a new regulator due to be up and running by April 2015. The government is setting it up following recommendations by Sir Ian Wood as part of a strategic industry review published earlier this year.
A Boost for UK Offshore Drilling? DW Monday Muses
Drilling activity offshore UK is now expected to increase over the next few years as government and industry reacts to the recommendations in Sir Ian Wood’s report – the “Wood Review” – to maximise UK offshore oil & gas recovery advises Douglas Westwood's 'DW Monday' study. From a peak of 396 in 1996, numbers of wells drilled offshore UK fell to 164 in 2013, a low not seen since 1979. Development wells were down from 289 in 1998 to 120 in 2013.
UK Oil and Gas Regulator to be Aberdeen-based
Britain's new oil and gas regulator will be based in Aberdeen, traditional heart of Britain's oil and gas industry, Chief Secretary to the Treasury Danny Alexander told an industry conference in the Scottish city on Thursday. The Oil & Gas Authority is being set up after recommendations by Sir Ian Wood as part of a strategic review published earlier this year, which identified the need for an agency with greater powers to foster collaboration and maximise recovery of oil and gas from the UK North Sea.
North Sea Drilling, Deals To Remain Slow
High operating costs and dwindling reserves will result in low drilling activity and few takeover deals in the North Sea over the coming year, consultancy Deloitte said in a quarterly report on Thursday. Well drilling in the North Sea fell year-on-year in the first quarter as poor weather and high costs hampered exploration and appraisal work, Deloitte said. British reserves in the North Sea are falling rapidly after around 40 years of production…
North Sea Drilling & Deals to Remain Lower: New Report
Drilling and deal activity on the UK Continental Shelf (UKCS) will remain at a steady low for at least the next year, suggests a new report from business advisory firm Deloitte. Poor weather and high costs have already had an impact on the amount of exploration and appraisal (E&A) work conducted by operators in the region during the first quarter. The report, which details activity across North West Europe over the first three months of 2014 and was compiled by Deloittes Petroleum Services Group (PSG)…
Mixed News for the Oil and Gas Industry
On the whole, this year’s Budget was good news for the O&G sector, with the UK Government accepting the recommendations of Sir Ian Wood’s report. However, the Bareboat Chartering changes announced in the Autumn Statement will, despite industry objections, take effect from April 2014, with a slight relaxation of the cap. • A new body will be created to encourage exploration and reduce decommissioning costs. • From 1 April, the scope of substantial shareholding exemption (SSE) is being extended.
Britain Oil Review: New Regulator Needed to Lift Output
Britain urgently needs its oil and gas companies to pay for a new regulatory body to encourage industry collaboration and counter plunging North Sea production rates, a government review, the first since the mid-1990s, said on Monday. Britain's oil and gas output has fallen about two thirds since its peak at the turn of the century, but reforms could lead to 200 billion pounds ($330 billion) worth of extra oil and gas being extracted, the government said.
New Report: North Sea Oil Gushes, Less Interest in UK Continental Shelf
The report, detailing activity across North West Europe over the last 12 months and compiled by Deloittes Petroleum Services Group (PSG), found the number of UK fields which started production rose by 44% in 2013 (up from nine in 2012 to 13 in 2013). This figure represents the highest number since 2008, when 16 fields were brought on-stream. Of the 13 fields brought on-stream last year, 84% were eligible for tax allowances, pointing to a positive industry reaction to the government incentives in place.
