UK: looking for a foothold

High oil prices mean the majors are less willing to part with UK North Sea assets. But, reports James Gavin, innovative operators are still able to secure promising offerings on the UKCS, which, despite declining production, could continue producing until 2050

CONFIDENCE has returned to the UK North Sea. Some 70 exploration and appraisal wells are expected to be drilled on the UK continental shelf (UKCS) this year. Applications under the country's latest offshore oil and gas round, which closed on 9 June, hit a three-decade high, with firms bidding for a record 279 blocks – an increase of 115 on the previous round. A survey last year of 200 oil and gas companies, by the geophysical company Robertson Research, found the UK the top destination for new upstream investments. The UK Offshore Operators Association (UKOOA) claims only half of the UK North Sea's oil and gas has been exploited. It estimates that the basin contains some 28bn barrels of oil