ALTHOUGH official figures show that the UK came out of recession in the final quarter of 2009, the effects are still evident in the country’s oil sector. Just five E&A (exploration and appraisal) wells are active at the start of 2010, utilising four mobile drilling units and a production platform.
The worst year for a considerable period, 2009 started on a healthy note with 15 E&A wells drilling. Moreover, there were three new wells spudded during the first month. It’s nearly the end of January 2010 and still there are no reported new starts.
As for what is being drilled, the semi-submersible rig, Sedco 704, did indeed return to development duties for Shell following its Stavro exploration well on block 22/12a and is now working in the Bittern field (block 29/1b).
The semi, Noble Ton van Langeveld, while assigned to development duties with Maersk on the Lochranza field (block 15/20a), may return to E&A activity on this acreage in the second half of the year.
In the East Irish Sea, the jack-up, Ensco 92, has yet to start its 2010 E&A campaign. Following the Rhyl discovery in December, the rig remains with Centrica on the site of the 1983-drilled Morecambe appraisal well, 110/2a-7, ahead of a two-well exploration programme for EOG on block 110/12.
Total remains the sole operator active in the Northern North Sea. It is 150 days and counting since it spudded and later mechanically sidetracked the Alwyn “SNE” appraisal well, 3/9a-N52Y. Only now is the well finally being prepared for flow testing.
In the Central North Sea, Nexen’s 15/28c-9 Deacon exploration well, which spudded on December 9 using the semi, Transocean Prospect, is approaching 50 days on this Jurassic prospect, chasing reserves of about 30million barrels of oil.
The Stena Spey is 30 days into EOG’s 15/30a-14 exploration farm-in well on the Dunkeld prospect, having spudded at the tail end of 2009.
It is targeting reserves of some 30million barrels, too – this time in the Palaeocene.
Meanwhile, the Ocean Princess semi continues operations on Tweedsmuir appraisal well 21/1a-26 for Talisman. The programme is chasing additional Jurassic reserves and has been active for almost 50 days.
There is one active well in the Southern North Sea. Centrica’s 48/3a-5 Morpheus exploration well on former Venture acreage was spudded in December by Noble’s Julie Robertson jack-up. Reserves of about 190billion cu ft of gas are being targeted in the Rotliegendes sandstone.
Returning to the mood of the sector, it should be remembered that the start of 2009 fed off the back of the relatively bumper year that was 2008, whereas the 2010 resources hunt starts out at the tail end of a recession.
Caution is the watchword, but we detect a palpable air of optimism in the sector and there are indications that activity will pick up during the year.
There are positive signs in the market, with new rig contracts being announced. A number of near-term wells with rig contracts could benefit from third-party funding, and with some of these going ahead anyway, there are, potentially, some very attractive opportunities going begging.
Simon Robertshaw’s column is courtesy of drilling analysts Hannon Westwood
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