Tight Timeline for High Upside in 30th Offshore UK Licensing Round
Monday, October 9th, 2017
Global Petroleum Firm Offers Support to Small to Midsize Players to effectively spot the numerous hidden opportunities
The 30th Offshore UK Licensing Round offers small and midsize E&P companies the opportunity to take a stake in mature, attractive acreages. These include relinquished discoveries, abandoned or marginal fields, and areas nearby exploration prospects. A notable difference in this year’s round compared to 2016 is the fact that some of the acreage being released has not been available since 1965. This is an excellent opportunity to view these areas with a 1960's lens and apply 2017 technology and innovations. According to government officials, the round will also make use of the new Innovate License developed by the Oil & Gas Authority (OGA) in collaboration with industry to create flexible, variable licenses.
With industry costs down, oil prices stabilizing, and the appetite of investors gradually turning back to oil and gas, this round comes at an opportune time for players interested in the region. Assets that have been ignored or stranded in the past are now economically attractive in the current environment if developed with innovative and efficient concepts. There are approximately 60 data packs that contain ‘technical montages’ and provide the discovery’s history, static and dynamic information and digital subsurface data.
Capitalizing on these opportunities requires expertise and experience in the region. Sproule has extensive knowledge of the UK Offshore assets because of the multiple evaluations that have been performed in the region. Hands on experience combined with an extensive database of reservoir characteristics and recovery factors created by Sproule, allow for the rapid assessment of the range of uncertainty, identification of under-developed fields (relative to analogues), or upside potential and exploration prospect selection.
Support for tight timeline
Mr. Bandiziol, Sproule Regional Director, EMEA, contends the newly released opportunities are good, “but the short timeline given for the analysis, may not be enough to effectively spot the numerous hidden opportunities”. This is especially the case for small and midsize companies without extensive technical teams. According to Bandiziol, “Sproule can provide a cost-effective turnkey approach, starting with preliminary screening, block selection based on constraints and/or strategic direction and a technical-to-commercial evaluation of the assets attractiveness.”
“There are two aspects that place Sproule ahead of the competition in providing robust and fast evaluation: deep knowledge of the area and our recovery factor database.” If a company already has a team working these opportunities, Bandiziol recommends using Sproule to verify the results and optimize the analysis. Sproule experts can help with detailed valuations, the prioritization of the targets, the preparation of the exploration or appraisal programs, or the field (re)development plans.
For more information about this bid round visit OGA, or contact Danilo directly.
Danilo Bandiziol, Regional Director, EMEA
+31 6 4862 6450