The Oil and Gas Authority has bestowed £6m to pay for the study and exploration of UK offshore oil areas.
The money, in the form of study contracts, has been obtained by British Geological Survey, Lloyd’s Register and Schlumberger.
The main goal of the three-year contracts is to maximize the economic worth of the UK Continental Shelf (UKCS) by financing a new level of understanding as to how exploration of production and development, as well as decommissioning and late-life planning, will work in the area.
Speaking about the new project to Energy Live News, The Oil and Gas Authority’s Production and Decommissioning Director Gunther Newcombe said:
“In order to fulfil OGA’s goal to maximise economic value of the UKCS, it is vital we can independently assess remaining undiscovered resources and improve our geotechnical understanding. In addition, OGA is seeking to drive regional development and protect critical infrastructure while promoting the best application of new technologies.”
The Oil and Gas Authority recently made 1,200 offshore drilling blocks available on the UKCS.
Although it remains to be seen how this latest funding pledge will affect the UK oil industry, it is likely that it will lead to new information, which could increase oil production, and the value of oil in the UK. It may also help to secure further interest from major oil companies, such as Fuchs, ExxonMobil and Royal Dutch Shell, which use oil in leading products like Shell Tellus S2 M 46 and Fuchs WSP 783-L.