Apache’s further oil discoveries in the North Sea are a real “morale boost” for the sector, according to the chief executive of Oil & Gas UK.
Deirdre Michie spoke to Energy Voice on the back of last month’s announcement of up to 70million barrels of recoverable oil in the North Sea.
US-based Apache Corporation announced finds on two exploration wells in the Beryl area and a “large” discovery at its Seagull prospect about 50 miles south of its huge Forties Field.
The company said it had also drilled two “significant” development wells in the Beryl area, from which no reserves have been previously booked.
Future appraisal drilling will take place to see exactly how much the potential is to add to Apache’s proved reserves in the North Sea, which at the end of last year stood at 140million boe.
The discoveries are a major tonic for the offshore industry as it struggles to recover from the blow of a collapse in oil prices.
Michie said: “It’s a morale boost, it’s really welcome news and it shows there are still opportunities in a mature area.
“It reinforces there’s more to go for. The application of seismic technology is unlocking areas we thought were already explored.
“It’s welcome at a number of levels and its good news for the industry.
“My understanding of the discovery is that it’s quite significant and it’s above the average for discoveries made in the last five years.
“It was between 50 and 70 million barrels which compares well when you think that on average over the last three years, just 55 million barrels in total have been discovered annually.
“It’s a significant discovery and it’s not one that’s uneconomic.”
The industry body boss said the sector had been focused on cost and efficiency.
She said collaboration between companies had meant “positive things” were happening across the sector.
Earlier this year Oil & Gas UK revealed production in UK waters is set to rise for the first time in 15 years this year.
Provisional figures showed production for the first six months of the year could be up 2.5% on the same time last year.
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