mer uk past, present and future · mer uk past, present and future dr andy samuel chief executive ....

Regulate: R312 G50 B155

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Influence: R0 G174 B239

Asset stewardship: R154 G149 B0

Technology/data: R239 G130 B0

Right conditions: R166 G25 B46

People/process: R99 G102 B106

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Exploration: R72 G168 B66

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responsibility and liability is expressly disclaimed. The OGA does not provide endorsements or investment recommendations. Oil and Gas Authority is a limited company registered in England and Wales with registered number

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MER UK Past, Present and Future

Dr Andy Samuel

Chief Executive








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Today’s agenda

Reflections

on recent years

The prize ahead

What still needs to be

done? Graphic3








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2014: Crisis is looming

Oil price Government response

Wood

Review

HMT Driving

Investment

plan

Production

(million boepd)

Production

efficiency

Industry outcomes

Unit operating

costs

31 1.4

Scotland’s

Independent

Expert

Commission

65% $30

E&A wells

Government response








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First MER UK

Forum

£1.3bn fiscal package

£20m for seismic

OGA low oil

price team

2015: Emergency response

Government and OGA response

Industry outcomes

26

E&A wells

1.6

Unit operating

costs

2014

2015

OGA published

Call to Action

Production

(million boepd)

Oil price

$21 Production

efficiency

71%








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2014

2015

2016: Fightback

Government response

E&A wells

High success rate

Production

efficiency

$16

2016

Further £1.2 bn package of measures

PRT reduced to 0%, SCT reduced to 10%,

further £20m for seismic, £180m for OGTC

Production

(million boepd)

Oil price

Industry outcomes

Unit operating

costs

1.7 22 73%

Protect existing barrels mmboe

356 New barrels added mmboe

725

1080 257 Tripartite

barrels mmboe

Costs

mitigated £m

145 success stories to end

April 2017 recorded across the

OGA, in partnership with industry

and government

2016: OGA action

1.7 Value of

investments £bn

Time saved

to industry (fast-tracked

consents)

1914 Days

Promotion

Stewardship

Data

Guidance

Strategies

Benchmarking Stewardship

Expectations

Tiered

reviews

Data

survey

Licence rounds

29th offshore 14th onshore Supplementary

Competition Meetings Financial

penalty Sanctions TPA

Exploration Asset Stewardship Decom

Technology EOR IM

Supply Chain

MER UK

Projects

Unsanctioned

discoveries Geological & Seismic

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2017: so far

2014

2016

2015

2017

Assets

changing

hands

Industry predictions

E&A wells Production

efficiency

Unit

operating costs

Production

(million boepd)

Fields

Pipeline Terminal

Operator

Interest

The OGA does not provide endorsements or investment recommendations. Some transactions

are still subject to OGA and other regulatory consideration, their inclusion on this slide is not an indication of the outcome of that consideration.

Oil price

Discovery








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2017: MER UK focus

Breakdown of successes

Area plans

Need to be industry owned – OGA can initiate

Integrate area scopes

Value creating

MER UK Strategy

Central obligation

Take the steps necessary to secure that the maximum

value of economically recoverable petroleum is

recovered from the strata beneath UK waters

Case register

Number of cases

Successes

to date

8

12

4

Formal

intervention

Enhanced

facilitation

Facilitation

11 Emerging

issues

29

Current register








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2017: MER UK focus

Case register

Area plans MER UK Strategy

Central obligation

Take the steps necessary to secure that the maximum

value of economically recoverable petroleum is

recovered from the strata beneath UK waters

Need to be industry owned – OGA can initiate

Integrate area scopes

Value creating

Number of cases By type

Successes

to date

8

12

4

Formal

intervention

Enhanced

facilitation

Facilitation

11 Emerging

issues

29

Current register








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30th Round Focus on mature/producing areas of the UKCS

Extensive portfolio of prospects and

undeveloped discoveries – technology support

31st Round 2018 Frontier Round with free seismic

Focus on less explored areas

2015/16 legacy and reprocessed legacy lines

2015/16 2D broadband acquisition

30th Licensing Round Areas

UKCS Designated Area

Oil Field

Gas Field

Gas Condensate Field

2D line locations are subject to data availability and quality. The final datasets may vary from this

illustration. 30th Licensing Round areas are proposed and subject to further consultation and approvals.

2017/18: Upcoming rounds








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Realise full hydrocarbon

potential of the UKCS

World class

competitiveness

Expand service sector

range, market coverage,

double exports

Increase the prize

by half again over

the next 20 years

Shaping the future

Vision 2035








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Well on the way and still a lot to play for

2016 Production – 0.6

2016 Production 0.6

0.725 Tripartite

0.4 Protected

Further 1.4

Pre-Wood 2016+

Baseline

OGA / Current

OBR

Survey +

risked YTF

Further

Potential

Vision 2035: MER UK Progress

All volumes 2016 to 2050








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Producing Sanctioned Unsanctioned (risked) Small pools (risked) YTF (risked)

$b

n

Gas

Condensate

Oil

Under

evaluation Actual

Forecast

Activity survey

Activity survey

Current profiles

OGA / OBR

Total unrisked profile








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• Operator technology plans

• Tiered stewardship reviews

• Technology leadership board

Pace

Transparency

Area plans

• Collaborative behaviours tool

• Remaining flexible but robust

• MER UK Plans

Sustain

competitive

cost base

Partnership

• OGA supply chain action plans

• Supply chain task force

Industry’s responsibility OGA’s support

Technology

behaviours

Company

commercial

behaviours

Supply chain

behaviours

Swift

deployment

Many need to lead the change

Critical behaviours for MER UK

Thank you








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mer uk past, present and future · mer uk past, present and future dr andy samuel chief executive ....

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