The Role of Exploration in the Energy Transition...Q1 Q2 Q3 Q4 CNS NNS IS oS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Well spuds in year: 18 E, 11 A (Provisional) 17 E, 15 A (Forecast) In 2020, Operators
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Exploration in the Energy Transition
Nick Richardson
Head of Exploration & New Ventures 11th December 2019
Overview
State of Play
Energy Transition
Key Messages
Exploration Activity
Progressive Regulation: MER UK Strategy
Role of the OGA
Investment
and Action
Encouraging
Collaboration
Effective
Stewardship
OGA Approach
Sanctions Information & Samples
Dispute Resolution Meetings Powers
MER UK Strategy – Binding Obligations & Safeguards
Maximising Economic Recovery is Consistent with Energy Transition
More Flexible Licences
Central Obligation: “Relevant persons must take
the steps necessary to secure that the maximum
value of economically recoverable petroleum is
recovered from the strata beneath UK waters.”
Maximising
domestic gas
production as
important
transition fuel
OGA current role in Energy Transition
Licensing of carbon
storage and advice
prior to
decommissioning
Consistency of
offshore flaring and
venting regime with
government policy
Understanding offshore
energy integration,
including electrification
& hubs
Supporting diverse
range of supply
chain options
Enhanced Oil
Recovery
Emissions benefits
from increased
operating efficiency
and extended assets
life
OGA fully supports energy transition as set out in our policy
Publication of energy transition policy position in June 2019
1.54
1.42 1.42
1.57
1.63 1.63
1.7060%
64% 65%
71%73% 74% 75%
0%
10%
20%
30%
40%
50%
60%
70%
80%
0.90
1.00
1.10
1.20
1.30
1.40
1.50
1.60
1.70
1.80
1.90
2.00
2012 2013 2014 2015 2016 2017 2018
Production
efficiency
Production rate(million boe/d)
0
2
4
6
8
10
12
0
5
10
15
20
25
2012 2013 2014 2015 2016 2017 2018
Operating
costs
Costs now settled at
sustainable level?
UOC (£/boe, 2018 prices) [RHS]
OPEX (£ billion, 2018 prices) [LHS)
Major turnaround in performance
E&A
Discovered Resources (mmboe)
E&A Wells
Finding Cost ($/boe)
Over 0.5 billion boe
discovered since 2014
2018 - 115% reserves
replacement
0
20
40
60
80
100
120
140
2012 2013 2014 2015 2016 2017 2018
97%
9%
115%
60%
1%
UKCS Performance Highlights
157
48
83
115
64
131
239
0
50
100
150
200
250
300
0
10
20
30
40
50
60
2012 2013 2014 2015 2016 2017 2018
Private Equity/
Infrastructure Funds
Other
Utilities
Small Cap
Mid Cap
Large Cap/
Supermajor
Average Daily Production
25,000 boe/d
current production changed
hands past 5 years35%
Operator shares of infrastructure
based on throughput
2014Production
2018Production
Changing Face of Ownership
Major changes and many past barriers to investment removed
2014 2018
UKCS Oil and Gas Projections
Recent discoveries and future exploration make up approx. 1.0 bn boe of projection
Resource Progression
Remaining High Impact Prospectivity demonstrated by Glengorm Discovery
Play-Level
Yet-To-Find
Prospective
Resources
Top 50
Prospect-
Level
Opportunities Some Drill-
Ready
The National Data Repository
9Data is freely available to anyone in the world – not just the UK
OGA Digital Platform Users
10Freely available to all
Science thrives on the open
exchange of information and ideas,
and I commend the Oil and Gas
Authority for making a wealth of valuable data freely available”.Professor George Boyne, Principal, University of Aberdeen
Results to be published via NDR and DISKOS
Northern North Sea – Machine Learning
Overlooked Pay ProjectService providers:
Project Deliverables:
• Comparison and analysis of various ML techniques
• Ranked list of ‘overlooked pay’ opportunities in order of confidence
• Clean conditioned dataset to add to NDR
Status:
• Projects nearing completion over next months
• Reporting to Steering Committee prior to Publication of Results
• Close-Out Workshop planned for 4th June 2020 at OGTC
Future Licensing Rounds will continue to be supported through data releases
32nd Offshore Licensing Round
Supporting Data
• Southern North Sea Megamerge
• CNS & NNS Rock Physics Catalogue
• UKCS Petroleum Systems Project – Year 1
• >2,200 wells with joined Digital Well Logs
• UKCS-wide Gravity Inversion products
• Regional Thermal History Reports (AFTA &
VR)
• UKCS Satellite Seeps Database
• Spatial database of relinquished prospects &
leads
• Plus, many other previously released products
including Regional Maps and Undeveloped
Discovery Montages, Relinquishment Reports,
etc.
Data providers:
Relinquishment
ReportsSector wide insights
Field quality index
Reco
ve
ry f
acto
r Operator X
Acquisition
Processing
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Operator X
Operator X
Data & Insights
The OGA publishes data and insights through its OpenData webpage and the NDR
Production
Dashboard
NDR
Recovery Factor
Benchmarking
Seismic
Compliance
E&A Well Data
OGA will continue to exercise its powers to release data