The future of oil and gas activity in the North Sea remains promising, despite facing a complex set of challenges over the next few years, according to Shell’s UK production manager.
The Anglo-Dutch oil giant, which spends upwards of £2billion a year on North Sea projects, is turning its focus on extending the life of its current operations on the continental shelf.
But production chief Ole Myklestad told Energy Voice that, despite the challenges faced with operating on the mature UKCS, the company still had high expectations for the field with focus now on maintenance of existing projects.
“The industry is by no means dead. Quite the opposite, it just gets more complicated,” he said.
The primary challenge for the industry was enhancing production efficiency, with the UKCS operating at 60% efficiency in 2012, he added.
Key activities for 2014 included maintenance campaigns, fabric maintenance, riser replacements, and subsea pipeline pigging, he said.
The company, which was presenting at the Oil & Gas UK pilot share fair in Aberdeen, is looking to work with technology providers with innovative solutions for areas such as integrity management of subsea and flexible pipelines, umbilical end-of-life management and corrosion under insulation.
Opportunities coming up in the next 18 months included provision of decontamination and disposal services, subsea vales and trenching services, as well as jack up and modular platform drilling rigs.
Recommended for you
