Little Transparency on UKCS Discoveries 'Blocker to Investment'
The lack of transparency on new discoveries within the UK Continental Shelf is a blocker to investment.
That is the view of Fiona Legate, Wood Mackenzie’s North Sea upstream senior analyst, who made the comment following BP plc’s North Sea discovery announcement on Wednesday.
"[BP’s discoveries are] great news for the UKCS but the materiality of these discoveries is unknown at this stage,” Legate said in a statement sent to Rigzone.
“In general, there is very little transparency on new discoveries in the UKCS…Companies have up to five years to reveal well results after making a discovery. We view this as a blocker to investment,” she added.
Legate said that switching to a Norwegian-style model of announcing reserves at the time of discovery could help the supply chain to evaluate new business opportunities.
“It would also help other explorers to make better decisions,” Legate stated.
BP revealed yesterday that it had made new discoveries in the North Sea at Capercaillie, in Block 29/4e, and Achmelvich, in Block 206/9b.
The Capercaillie well was drilled to a total depth of 12,303 feet and encountered light oil and gas-condensate in Paleocene and Cretaceous-age reservoirs, while Achmelvich was drilled to a total depth of 7,857 feet and hit oil in Mesozoic-age reservoirs.
“These are exciting times for BP in the North Sea as we lay the foundations of a refreshed and revitalized business,” Mark Thomas, BP North Sea regional president, said in a company statement at the time.
Oil & Gas UK’s chief executive, Deirdre Michie, welcomed the new finds.
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