A director of Maersk Oil North Sea UK said yesterday it saw continued good business opportunities in the UK, but believed it was essential to drive down costs.
Troels Albrechtsen, director of exploration and new business at the company, told an Oil & Gas UK seminar in Aberdeen that, more than ever, British exploration and production (E&P) opportunities needed to be viewed in a global context.
He said: “We have welcomed the UK Treasury consultation on investment support as this would incentivise industry investments and keep the UK E&P market attractive in the global competition for funds.
“Although we accept it is a wise decision to postpone the 26th round (of licensing) to 2010, we see the importance of maintaining a flow of acreage from annual licence rounds in order to ensure that new opportunities become accessible.
“However, a pre-requisite for a recovery of the industry is the alignment of the cost base with the new oil-price scenario.
“It is an absolute requirement for the continued success of the UK oil industry that this imbalance between the cost base and the price of oil is corrected. We must therefore all work together throughout the supply chain, from operators to sub-contractors to base suppliers, to drive the costs down to levels that can sustain the industry going forward.”
Maersk Oil North Sea UK, which has its headquarters in Aberdeen, has more than 70 exploration and production licences and operates five producing fields, with operated oil production of 50,000 barrels of oil equivalent per day.
Yesterday’s seminar at Aberdeen Exhibition and Conference Centre was attended by more than 100 delegates.
It aimed to highlight new business models and financing in the current business climate, with operators, leading contractors, banks, energy investment companies and business advisers giving their views.
Paul Dymond, Oil & Gas UK’s operations director, said the event had been very successful, and that a broad range of companies of all sizes still saw good opportunities in Britain’s oil and industry despite a tough working environment.
Mr Dymond said: “Companies are still looking to grow their business and are looking for the UK Government to play its part by reducing the burden of very high taxation.”
Crude oil prices rose yesterday despite gloomy economic data and swelling crude stocks in the US.
US crude in New York rose $1.49 to settle at $49.90 a barrel, while Brent crude in London jumped $1.24 to $49.23.