COMBINED investment of £10billion by BP and its partners appeared to dampen claims that North Sea investment had been damaged by the chancellor’s March tax grab.
However, two reports this week have cited a slump in exploration in the North Sea – seen as vital to maintaining the pipeline of fields coming online and therefore supporting production of oil and gas going forward.
Oil and Gas UK’s annual economic report also said the North Sea had become a “two-speed” industry, with large projects such as Clair going ahead while smaller opportunities were being left by the wayside.
BP’s Bob Dudley acknowledged that investment decisions for smaller marginal projects and field extensions needed greater incentives and said the dialogue with the Treasury was continuing on achieving this.
Prime Minister David Cameron also acknowledged the importance of making sure marginal fields were developed, as well as field extensions.
“As a mature province, these marginal things will make a difference,” he said, adding that he understood the industry needed “consistency, clarity and certainty”.
BP said yesterday it was still marketing its southern North Sea assets, which have been on the market since the start of the year, reflecting the slow down in asset sales.
Meanwhile, Norway’s Petroleum Directorate said yesterday the rate of new discoveries in its part of the North Sea had been encouraging, citing its APA (awards in predefined areas) scheme and changes made in exploration policy.
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