UK North Sea oil and gas production could rise by 10% – generating an extra £10.5billion revenue – with a “targeted and better executed” maintenance strategy, an industry expert has claimed.
Alan D’Ambrogio, who heads up the oil and gas division for international consultancy ABB Consulting, said a long-term blueprint was needed to cater for the growing demands surrounding asset life extension.
“The UK has taken its eye off the ball when it comes to North Sea production,” he added.
“We’ve seen record investment but ageing assets, falling production and poor production efficiency all have to be addressed.”
D’Ambrogio said several operators represented at an energy industry breakfast event in Aberdeen last week had confirmed the North Sea was bottom of the league for production efficiency.
“With current oil prices and technological advances, the UK continental shelf, which covers all of Britain’s offshore, including the North Sea, could have up to 24billion barrels of oil equivalent.
“The focus needs to be on strategies which enable production efficiency to be increased on offshore facilities.”
Although there was some improvement in efficiency during 2013, D’Ambrogio said there was still work to do.
“The strategy should be about remaining in control and facing the future with fewer surprise set-backs,” he added.
“North Sea operators regularly review ageing assets using a risk-based approach yet not enough have a transparent and effective maintenance challenge process.
“It’s time this was addressed and we get North Sea production back on track.”
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