UK: Exploration improving, but more investment needed

THERE IS strong evidence of a pick-up in exploration and appraisal (E&A) activity this year, says the UK Offshore Operators Association (UKOOA) in its latest economic report. But the organisation adds that decline rates will see production fall below its 2010 target without substantial new investment. Operators drilled 32 new E&A wells (including 10 side tracks) in the first half of 2004, compared with 45 (13 side tracks) in the whole of 2003. In the same period, 12 new projects were approved by the Department of Trade and Industry, compared with 14 in the whole of 2003. Investment in UK offshore last year was still feeling the impact of the 10% supplementary charge on corporation ta