Copyright offshore-energy
As energy security concerns continue to run the show, Great Britain’s regulator, the North Sea Transition Authority (NSTA), has called on oil and gas operators to join forces and bolster well interventions and development drilling activities to revive shut-in wells to sustain domestic oil and gas production, which will lower the reliance on energy imports, support the supply chain, and unlock cost-efficient energy output from the UK sector of the North Sea. The UK’s North Sea Transition Authority claims that well interventions brought 37.5 million barrels of oil equivalent (boe) in 2024, equivalent to 34 days of average production despite a decline in activity. There is a fall in such activity on the UK Continental Shelf (UKCS), representing a drop to 425 in 2024 from 443 in 2023, continuing the downward trend of recent years, according to the NSTA’s annual ‘Wells Insights Report.’ As intervention costs dropped to £9.60 per barrel, yielding strong margins against Brent’s average price of £63.10 per boe, the regulator has pinpointed 200 shut-in wells with reactivation potential and already helped bring over 50 back online, contributing more than 8 million boe. As a result, the North Sea Transition Authority is urging operators to collaborate more closely with supply chain partners to retain offshore capacity and skilled workers, many of whom are seeking opportunities abroad in the aftermath of reduced UK activity. Companies are also encouraged to pursue development drilling campaigns on existing fields, as a way to leverage existing infrastructure to reduce costs. Last year, £1.6 billion was poured into 42 development wells, with plans for 44 more by 2027. Drilling more new development wells on existing fields enables operators to take advantage of infrastructure already in place, offering what is described as cost-effective production. The UK regulator believes that operators could make further savings by teaming up to organize development well drilling campaigns on multiple fields. Keith Hogg, NSTA’s Wells Manager, highlighted: “The NSTA has been working closely with operators to highlight the potential for well interventions to deliver cost-efficient production and ensure existing fields continue to form an integral part of the energy system. “While it is encouraging that some wells have been brought back into production, it is important for all operators to take urgent action by bringing the supply chain into the fold early, putting useful data on the table and making firm commitments to invest in the health of their wells.” Based on the NSTA’s report, extending the life of existing oil and gas wells through well interventions can slow the production decline from these assets and potentially allow them to operate more efficiently, with fewer emissions than drilling new wells. “There are opportunities to further enhance production by targeting existing fields, as 30% of the UKCS’s well stock was shut-in last year. While decommissioning will be the next step for many of those wells, a significant number could be reactivated. Without investment, they will be lost permanently, along with domestic reserves and resources,” explained the regulator.
