As the price of Brent crude flirted with dropping below $40 a barrel yesterday, directors of leading North Sea operators were asked what they might like the industry to get from Father Christmas.
The answers, delivered to a full house at an Oil and Gas UK business breakfast at the Aberdeen Exhibition and Conference Centre (AECC) yesterday was clear.
Phil Kirk, chief executive of oil and gas independent Chrysaor, wished for a major discovery that attract the interest of international investors and help transform The North Sea’s reputation for being a mature basin with little to offer.
“I want a big frontier discovery sometime soon to make everybody turn their heads all around the world,” he said.
“That and a big tax cut.”
Ray Riddoch, UK managing director & senior vice president, Europe for Nexen Petroleum UK, called for a break out of seasonal peace.
“I think as an industry we speak about collaboration, and on a scale of one to ten we are about two,” he said.
“I would like Santa to bring about a fundamental sea change in attitudes in the way we work as an industry.”
The panel was also asked if further government funding for seismic surveys of the North Sea would be on a potential wish list.
In October, the Oil and Gas Authority (OGA) said that over 77,000sq miles of the North Sea had been surveyed thanks to £20million in funding allocated in the March 2015 Budget.
The data is open to all operators and explorers and was hailed as useful driver of faltering exploration and licensing ahead of the UKCS 29th round, which will be announced early next year.
Mr Kirk said. “I think there would be an interest if industry was prepared to write a checque in partnership (with government).
“It would be far easier if the industry stepped up to the plate.
Perhaps something similar to what happened in the Barents in Norway, whereby a whole range of companies contributed to shoot seismic over a particular frontier area. Something like that could get some traction.”
Mr Riddoch added; “Never say never. But under the right conditions, for the right area – industry has to have an open mind about new ideas and new commercial mechanisms.”
Gunther Newcombe, OGA’s director of exploration and production, added: “We need to promote de-risking thought seismic data. The industry has a responsibility work that and we are working that space through industry.”
