There is still a “considerable and compelling prize” to be won in the North Sea, according to the Oil and Gas Authority (OGA) chief executive.
Speaking at Offshore Europe, Andy Samuel revealed the regulator had surpassed the halfway point of unlocking an additional four billion barrels of oil for the basin.
“If we look at what’s left to play for it is very significant and extends the life of the basin considerably. Over the last two years industry, with the OGA as a catalyst, strongly supported by government, has added 2.1bn barrels in comparison to the pre-Wood forecast,” he said.
“We are well on the way to delivering the additional 3-4bn barrels envisaged by Sir Ian Wood in the Wood Review.”
To leverage the additional barrels the region will need to do two things, according to Mr Samuel.
“To realise the huge value presented by Area Plans and the UKCS more generally, collaboration is key. While we expect industry to lead the development of Area Plans, likewise we expect them to lead on some changes in behaviours,” he said.
“A strategic approach is absolutely crucial to maximising economic recovery from this basin – this is one of our top priorities – The prize we could generate from these Area Plans is up to 4bn barrels.”
To date the regulator has successful resolved 30 cases using its powers.
“On 10 occasions we’ve had to take matters as far as formal intervention but have not, to date, needed to go as far as sanctions,” he said.
“But the sustainable route is not for the OGA to have to intervene in every case, it’s for industry to ‘self help’ – we only have capacity to get involved in c. 20-40% of the issues.”