• 4 minutes Nord Stream 2 Halt Possible Over Navalny Poisoning
  • 8 minutes America Could Go Fully Electric Right Now
  • 11 minutes JP Morgan says investors should prepare for rising odds of Trump win
  • 6 hours Permian in for Prosperous and Bright Future
  • 10 hours Daniel Yergin Book is a Reality Check on Energy
  • 6 hours YPF to redeploy rigs in Vaca Muerta on export potential
  • 5 hours Gepthermal fracking: how to confuse a greenie
  • 17 hours US after 4 more years of Trump?
  • 54 mins Oil giants partner with environmental group to track Permian Basin's methane emissions
  • 11 hours Top HHS official takes leave of absence after Facebook rant about CDC conspiracies
  • 22 hours The Perfect Solution To Remove Conflict Problems In The South China East Asia Sea
  • 3 days US Oil Refinery Fexibility
  • 3 days China Must Prepare for War Says State Media
  • 2 days Surviving without coal is a challenge!!
  • 2 days Portuguese government confirms world record solar price of $0.01316/kWh
Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

North Sea Oil & Gas Operating Costs Rose Last Year

Production and operating costs of oil and gas field operators in the UK North Sea section went up by about 2 percent last year, the Oil and Gas Authority—the national industry watchdog—said in a new report.

The total operating expenditure of North Sea oil and gas companies active in the region stood at a little over US$9 billion (6.9 billion pounds), the OGA said, adding that despite the slight climb, they were still 28 percent lower than costs in 2014 before oil prices collapsed.

The authority has calculated the average cost per barrel of oil equivalent at US$15.17 (11.60 pounds) for 2017, which is pretty good considering the North Sea used to be one of the highest-cost oil and gas producing regions in the world.

In the Southern North Sea and the Eastern Irish Sea, costs actually fell last year, while in the Central North Sea these costs were the highest. Even so, the data collected by the OGA showed that more than 50 percent of field operators in the area reduced their overall operating expenses last year from a year earlier, despite the fact that cost per barrel of oil equivalent rose for most of them.

Recently, the North Sea has become a hot spot for M&A deals: Equinor earlier this month said it had agreed to buy Chevron’s stake in Rosebank, one of the largest undeveloped oil and gas finds in the British section of the North Sea. For Chevron, the deal is part of a larger plan to exit the North Sea in full. Marathon Oil announced it would leave the North Sea, too, and would instead focus on its domestic operations.

Also recently, an independent company, EnQuest, bought the remainder of BP’s stake in the Magnus field. BP went on a selling spree in the North Sea last year, and even offloaded its Forties pipeline. Another local independent, Verus Petroleum, paid $400 million for stakes in several fields, sold by Japanese Itochu.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News