Growing old gracefully

Attempts are being made to encourage new entrants to the UK Continental Shelf to help extend the life of ageing fields and boost new exploration as some majors sell their assets there. At the same time, a new tax regime has added to the existing high costs operators face. David Townsend reports

THE UK offshore industry could continue to produce significant volumes of oil and gas for the next 40 years, says the UK Offshore Operators' Association (UKOOA). But, for that to happen, the right economic, regulatory and fiscal conditions need to be put in place, it says. Under present conditions, the North Sea's performance trend is not sustainable because the industry is spending more to produce less, says Beverly Mentzer, who chairs UKOOA's fiscal policy group. Considerable efforts will be required across industry to challenge and change this trend for the better. We will have to make some tough decisions to enable delivery, with an appropriate fiscal and regulatory environment of the ma