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Plans for North Sea Fields in 2023

Plans for North Sea Fields in 2023

 

Analytics company Wellingance announced Final investment decisions (FIDs) are being planned for a number of large greenfield developments in the UK North Sea in 2023.

Welligence announced alongside the announced FIDs planned for Cambo and Rosebank, decisions are expected on Perth, Bentley and Bressay in the North Sea.

EnQuest acquired operatorship of both Bentley and Bressay in 2021; large oilfields close by to one-another; 85miles south-east of Shetland in the Northern North Sea.

EnQuest announced in March that they added almost 250m of barrels of oil equivalent to its 2C reserves and that it was exploring a range of development options.

They added that a field development plan would be advanced in 2022.

Bentley lies less than 10miles from EnQuest’s producing Kraken field.

Equinor operates Rosebank, which is thought by its partners to have 300 million recoverable barrels in its first phase, which will produce through the electrification-ready Knarr FPSO.

Ithaca Energy, which is partnered on Rosebank, operates the Cambo oilfield where an exploration licence was granted in 2001 with a target of 170 million barrels in its first phase.

Cambo and Rosebank in the West of Shetland, together the largest untapped projects in the UK, are due for FID in 2023.

That’s despite climate controversy marring the development, which is also electrification-ready.

Shell is a 30% partner on the project and, despite saying last year it would not progress the field to investment, has not exited the project.

The Greater Perth Area is 100% owned by Parkmead Group, in the Central North Sea, one of the region’s largest undeveloped projects.

Holding around 55 million barrels of recoverable oil equivalent, discussions are ongoing with CNOOC on using the nearby Scott platform six miles south to receive production from Perth.

Parkmead drafted in finance advisory Parkmead in summer to help find a partner for the development.

Welligence also predicted Firmer “plans for electrification of offshore facilities”, in the wake of recent events.

Earlier this month, Equinor, Ithaca and BP recently signed a pact to progress electrification in the West of Shetland following amendments to the UK windfall tax which effectively granted such projects a subsidy.

Last month, Chancellor Jeremy Hunt unveiled a hike to the Energy Profits Levy, but kept the general investment allowance the same.

However, there was a hike in the allowance specifically for projects to electrify oil and gas assets – meaning firms spending £100 on decarbonisation will receive £109.25 back.

Ithaca, BP and Equinor signed an agreement to explore electrification options for the huge Clair, Rosebank and Cambo fields in the West of Shetland.

Increase in appetite for mergers and acquisitions

An increased opportunity for merger and acquisition deals has also been flagged by the organisation.

Assets may be changing hands in the new year as CNOOC International, ONE-Dyas, Suncor, Shell and ExxonMobil’s SNS assets present a “large pool of opportunities.”

However, this is dependent on there being “sufficient buyer appetite” according to the analysts “which appears to be in strong supply” at the moment but the organisation does pose the question “for how long?”

Read the latest issue of the OGV Energy magazine HERE

Published: 27-12-2022

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