Page 12: of Offshore Engineer Magazine (Mar/Apr 2017)

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In-Depth

ANALYSIS

Operating in the margins

With more than 3 billion boe up for grabs, the race is on to ? nd ways to unlock the remaining oil and gas in around 350 unsanctioned, and largely marginal, UK

Continental Shelf discoveries. Emma Gordon reports on the latest developments.

A DP production system concept for marginal ? elds. eveloping “really simple” technical solutions that

Image from Amplus Energy.

D ensure the economic viability of marginal ? elds, and in particular small pools, is a global oil and gas business oppor- expenditure] solutions that work. Get those, and you will have tunity like no other. business opportunity out there like no other; [one that is] scal-

That’s according to Mike Tholen, UK industry body Oil able around the world.” & Gas UK’s upstream policy director. “These are high-risk

Setting the scene earlier at the same session, Carlo opportunities in every commercial and technical sense,”

Procaccini, head of technology at the UK regulator, the Oil he says, speaking at the Subsea Expo event in Aberdeen in and Gas Authority (OGA), said that there early February. “Unless we ? nd a way to make them ultra- were around 3.4 billion boe reserves attractive, they will not move. Whatever the environment recoverable from some 350 unsanctioned we’re in.” discoveries on the UK Continental Shelf

In fact, he says unless the “all-up costs” – comprising (UKCS): 70% of which were small, with operating, capital, decommissioning and ? nding spend – are reserves of fewer than 10 MMboe.

reduced to around US$20/bbl, most small pools will remain Procaccini says that while much was economically unviable. needed to unlock these discoveries, the “The challenge to crack is to ? nd $10-15/bbl [operating process had begun, adding: “The complex

Carlo Procaccini

March 2017 | OE oedigital.com 14 014_OE0317_inDepth.indd 14 2/21/17 4:38 PM