Need to speed up new field de­liv­ery

The Press and Journal (Aberdeen and Aberdeenshire) - - BUSINESS -

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.”

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