Production efficiency from N. Sea oil and gas operators last year rose for a fourth consecutive year to 73% – representing an additional production of 12 million barrels of oil equivalent compared to 2015.
Production efficiency is a key performance indicator for the industry and helps the Aberdeen-based OGA regulator to assess operators’ asset stewardship performance.
The latest annual report** from OGA on production efficiency in 2016 compares actual production to the theoretical maximum economic potential of the fields and associated infrastructure, compared to previous years.
Data was collected as part of the OGA’s 2016 UKCS Stewardship Survey, which allowed for a more in-depth analysis in key areas, for example in looking at the major causes of lost production.
An OGA spokesman explained: “Production efficiency is a key focus area for Maximising Economic Recovery from the North Sea and our PE target for 2018 is to get to 80% actual output.
Recent years have seen the UKCS reverse the declining trend in both PE and overall production. From 2012 to 2016, losses have fallen by 157 million boe while production has risen by 34 million boe.” Other key points from the report include:
- In 2016, 38% of hubs met or exceeded the overall target of 80% for the UKCS, compared to 30% the previous year
- Over four years, increases of up to 57% (absolute) have been seen in operator production efficiency
- Since 2012 there has been cross industry improvement with 88% of operators increasing in efficiency
Total losses in the UKCS were 210 million boe. Plant losses are the largest category in the Central North Sea, Northern North Sea and West of Shetland, with the majority of losses caused by full plant outages
In the Southern North Sea, wells is the largest loss category. This is due (at least in part) to the later life stage of the region and the consequent drop in of well-productivity over time
Gunther Newcombe, OGA Operations Director, added: “Industry’s combined persistence and focus on increased production efficiency in the UKCS has delivered an additional 12 million barrels in the past 12 months. This is playing an important role in delivering MER UK.
“Operators can get a PE benchmark pack relating to their own data by making a request to the OGA at PPR.Team@ogauthority.co.uk “.
** Get the full OGA report here: http://urlin.it/145023