West of Shetland Touted as Place to be for UK Growth
For UK growth, the West of Shetland is the place to be, according to a new report by Wood Mackenzie.
Large scale activity in the region in the near and medium term will lead to production growth into the mid-2020s, “and perhaps beyond”, according to the report, which highlighted that the area is still a core region for major oil and gas companies.
The report outlined a number of upcoming project milestones to watch out for in the West of Shetland in the near future, including the below:
- The start up of production at the 640 million barrel of oil equivalent Clair Ridge project in the fourth quarter.
- The start up of the Lancaster EPS project in the second quarter (2Q) of 2019.
- A possible final investment decision (FID) on the Cambo project in 2Q 2019.
- A possible FID on the Rosebank project in 2Q 2019.
“The majority of UK oil reserves for BP, Shell and Chevron are located West of Shetland, and four projects in the province will drive UK production growth through the 2020s - Clair Ridge, Clair South, Cambo and Rosebank,” Kevin Swann, from Wood Mackenzie’s North Sea upstream team, said in a company statement.
“The West of Shetland is also under explored, with less than 160 exploration wells drilled in the region to date. Other UK regions have had more than 500 wells drilled,” he added.
Swann also said that material exploration success for Siccar Point at the 1.4 trillion cubic feet Lyon gas prospect could create a new northern gas hub, which could unlock another 300 billion cubic feet of discovered gas that is currently stranded.
The Wood Mackenzie representative stated that “fractured basement” is a “big wildcard” too.
“With an estimated 2.8 billion barrels of oil equivalent of contingent resource in Hurricane Energy's fractured basement portfolio, all eyes will be on the Lancaster early production system, which is due to start production early 2019,” Swann said.
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