There’s a “enormous alternative to entry sources in a extra well timed, clear, and cost-effective method” in the UK (UK).
That’s in keeping with the 2024 Wells Perception Report, a latest report from the North Sea Transition Authority (NSTA).
The report highlights effectively exercise tendencies within the UK Continental Shelf (UKCS), primarily based on an evaluation of knowledge from the 2023 UK Stewardship Survey (UKSS), supplemented by knowledge from the Nicely Operations Notification System.
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The report reveals that effectively intervention is presently in a position to present hydrocarbon manufacturing at a price of lower than $15.30 (GBP 12) per barrel of oil equal (boe), “a really engaging choice at in the present day’s oil and fuel costs”. As well as, effectively intervention requires fewer operational days, much less development materials, minimal waste disposal, and decrease gasoline burn than drilling a brand new effectively, and due to this fact produces decrease emissions.
Operators ought to try to extend their effectively intervention exercise to increase the manufacturing lifespan of their wells and to offer a steady circulation of labor for the UK’s world-class provide chain, the report urges, as suppliers, together with rig house owners, are more and more looking for alternatives abroad because of a scarcity of contracting alternatives within the UKCS.
“It’s critical that this functionality is saved within the UK to ship the floating wind, carbon storage and hydrogen initiatives which can speed up the power transition,” the report remarks.
Interventions elevated within the Northern North Sea (NNS) to 102 wells in 2023 from 82 in 2022. There was additionally a rise within the West of Shetland (WoS), the place 9 wells benefited from intervention work in 2023, up from two in 2022. Nonetheless, the Central North Sea (CNS), Southern North Sea (SNS) and the East Irish Sea (EIS) skilled a lower in exercise.
To encourage extra interventions, the NSTA stated it has already held one-to-one periods with main North Sea operators and accomplished an in depth examine of the 795 shut-in wells to grasp what proportion might be introduced again into manufacturing. Information from the examine and suggestions from effectively operators is being analyzed and can result in a provide chain and operator workshop on the finish of the yr which can determine cost-effective options to carry wells again into manufacturing.
Carlo Procaccini, NSTA Chief Technical Officer, stated, “Nicely intervention work can and does produce spectacular outcomes, boosting effectivity and offering cleaner and cost-effective manufacturing. We count on that bringing collectively operators with the availability chain will spotlight important alternatives for everybody”.
Individually, the report reveals that the whole energetic effectively inventory on the UKCS is now 2,546, down from 2,560 in 2022. The previous yr has additionally seen a rise within the variety of shut-in wells to an all-time excessive of 31 p.c of the energetic effectively inventory, or 795 up from 742 in 2022.
A proportion of the shut-in effectively inventory could be introduced again on-line. Nonetheless, with out funding in infrastructure or downhole interventions, it’s possible that many of those wells will probably be completely decommissioned, the report notes.
The place reactivation just isn’t possible, wells needs to be decommissioned in a well timed and cost-effective method, the report recommends. The business solely achieved 70 p.c of deliberate effectively decommissioning actions final yr as operators continued to defer work.
The report additionally reveals that operators drilled eleven exploration wells, two of which had been repurposed as producers, and 5 appraisal wells in 2023. Whole exploration and appraisal effectively spend was $728.25 million (GBP 571 million), in comparison with $350.73 million (GBP 275 million) in 2022.
Business spent $1.81 billion (GBP 1.42 billion) on finishing 41 new improvement wells in 2023, barely greater than in 2022 and in 2021, in keeping with the report.
To contact the writer, electronic mail rocky.teodoro@rigzone.com
