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AnalysisAnalysisAnalysis government body, to increase exploration and recovery around existing assets, as well as helping to commer- cialize known but “parked” discoveries.

“There are 14 different projects the industry could get involved in and deliver signi? cant returns from, but at $100 million a well, indi- vidual companies are unwill- ing to take the risk,” she told the Oil & Gas UK breakfast brie? ng. “Volumes companies are mostly drilling for focus on 10-20MMboe. We need a new wave of investment in different and new plays to go elephant hunting (? elds over 1 billion boe) again.”

The Exploration Task Force (ETF) was recently created by PILOT to see how to boost exploration. The ETF has been looking at opening up new or neglected plays on the UKCS; improving use of The basin in 2014, according to Oil & Gas UK, based on its 2014 Activity Survey. seismic imaging, other new technologies, and data shar- complexity. He emphasized “more high-quality seismic resource containing informa- implemented and to return ing; collaboration with other that the new regulator’s role coverage of new plays could tion about the prospectively the basin to growth in invest-

PILOT initiatives; and a com- would focus on stewardship, be a game changer.” and geology of the UKCS. ment, jobs, and production. parative review, to see how rather than regulation. This could be through It also says more should be “This will not be achieved the UK’s regime compares The review outlines six better seismic, data sharing, done to enable timely shar- without much hard work and with those in other countries sector strategies, covering: and government support ing of well and seismic data, dedication to radical change around the North Sea. exploration, asset steward- for underexplored or new and that both the industry and sustained improvement,

But, it has been acknowl- ship, regional development, plays. New plays identi- and government fail to make which will be required of us edged that the Department of infrastructure, technology, ? ed by PILOT’s ETF are the best use of the British all, in both the industry and

Energy and Climate Change, and decommissioning. listed as: West of Hebrides; Geological Survey. government–and there is no which oversees the licens- Carboniferous, beneath the According to the review, time to lose,” Malcolm Webb

Exploration ing regime on the UKCS, has central North Sea, east Irish industry also believes the cur- says. “We need to implement been under-resourced and The largest section, and the Sea, and southern North rent ? scal, or taxation, regime these changes without delay. therefore unable to cover biggest challenge, among Sea; western Graben margin; in the UK failed to provide The clock is ticking.”

Speaking at a press brief- as much ground as it might these was how to increase fractured basement; sub- suf? cient incentive to explore, ing to launch the ? nal “UKCS wish. exploration rates. basalt and cretaceous sands; particularly in less prospec-

According to the review,

Maximising Recovery Review,” high CO2 gas; Triassic west tive and more technically

A new paradigm more than 360 exploration

Edward Davey said an imple- of Shetland; English Channel challenging areas, despite

Summarizing the report’s and southwest approaches; a recent string of tax allow- wells have been drilled on the mentation team to carry out the main recommendations, Permian in the east Irish Sea. ances announced by the UK

UKCS since 2000, leading to review’s recommendations was

Sir Ian said there should be The review recommends government’s Treasury. Work the discovery of 4.2 billion already running. He hoped to a new shared strategy for the new regulatory body is currently ongoing to add a boe. However, post-2008, appoint a chief executive for maximizing recovery from should help facilitate indus- high-pressure, high-tempera- exploration activity has fallen the new regulatory body by the UKCS, with clear com- try and seismic companies to ture ? eld allowance. sharply, reaching a low of 14 summer, with a shadow body mitment from government, a carry out speculative seismic wells in 2011. Last year was to be formed by autumn this

Broad support new arms-length regulatory data acquisition, particularly not much better, with just 15 year. Legislation to form the body, with additional powers targeting new plays, which The recommendations in exploration wells reported. new body would also be put to those under the existing According to the review, to lack up-to-date seismic cover- Sir Ian’s review have gained to the UK Government’s next regime, and a focus on greater boost exploration rates, access age, with ? nancial support if strong support from industry, session. collaboration in industry to to geological information and necessary. via Oil & Gas UK. But, the

FURTHER READING enable regional, or cluster, the corresponding ability to The review also proposes body says, they will need hubs and ? eld developments, evaluate new plays needs to creating, within 18 months, a support from the indus-

Read the full Wood Review and a reduction in delays and be addressed. It suggests that new online, up-to-date, digital try and government to be report: www.woodreview.co.uk oedigital.com April 2014 | OE 27 000_OE0414_Analysis-Wood.indd 27 3/23/14 9:16 AM