Need to speed up new field delivery
North Sea operators must reduce the 25-year period it takes to bring new discoveries to development, according to a new report.
The Oil and Gas Authority (OGA) has warned that the industry must quicken its “pace” unless decommissioning happens too rapidly for new discoveries to use existing infrastructure.
The Project Insights Report states that 75% of new developments from this point are expected to be smaller and linked to existing platforms and pipelines in order to be produced, rather than have new infrastructure.
“Window to use existing infrastructure reduces”
It said: “Pace is an issue as the window to use existing infrastructure reduces as more fields cease production.
“The duration from discovery to final investment decision needs to be reduced.”
The OGA said the average time between offshore oil and gas being discovered and projects reaching sanction – known as Final Investment Decisions (FIDs) – is 25 years.
The time between FID and first production is then a further three years.
The report added: “Industry needs to focus on delivering projects to the correct level of detail for a FID as efficiently and quickly as possible, if the UK Continental Shelf is to make the most use of the existing infrastructure.”