The Oil and Gas Authority modifies priorities for the UK’s offshore future

The Oil and Gas Authority (OGA) has outlined its priorities for the UK continental shelf (UKCS) between 2019 and 2024.

The latest Corporate Plan details a five-year work programme comprising seven priority themes, 18 priority activities, and seven key performance indicators (KPIs).

Today the environment is much changed from the downturn of 2014, the report points out, with UK offshore operating costs down, production rising, and the UKCS now globally competitive.

At the same time, operators are making strides in cutting the costs of decommissioning, with some already surpassing their 35% cost reduction target.

There is also clear evidence of technology uptake and more collaborative partnering with the supply chain.

The OGA’s new plan recommits to seven themes in its inaugural Corporate Plan 2015, namely: revitalising exploration, improving asset stewardship, driving regional development, improving decommissioning efficiency, leveraging technology and data, creating the right conditions, and developing people, processes, and systems.

However, following the changed environment and lessons learned since 2015, the OGA is now placing a stronger emphasis on digital and the use of big data to overhaul industry practice, at the same time acknowledging the importance of the energy transition and the OGA’s role in this development.

In addition, the OGA now expects UK offshore production out to 2050 to be 3.9 Bboe higher than in its March 2015 forecast, equivalent to an extra £88 billion (US$113.6 billion) net pre-tax total cash flow.

These extra barrels will come from field-life extensions, infield reserve additions, enhanced oil recovery, new projects, and new discoveries.

Source: Offshore Magazine