Active year in UK Continental Shelf amid market and legislative uncertainties

The year 2007 proved to be another active year in the UK Continental Shelf (UKCS) amidst market and legislative uncertainties. Exploration and appraisal drilling has been running at slightly higher levels than those achieved in 2006, while development drilling has been slightly below level as was in 2006. A substantial number of new fields have also come onstream, including Buzzard Field in the outer Moray Firth with estimated recoverable reserves exceeding 500 million bbl. Potential development projects are being re-assessed, particularly in the case with gas fields, because the wholesale gas price has not increased in line with oil prices. The year 2007 also saw the completion of the 24th Licensing Round with 246 blocks being awarded. A large proportion of the awards were in the form of Promote Licences, which are intended to provide opportunities for small players to understand geophysical and geological studies with the benefit of discounted fees for the first two years of their licences.