NewsOf shore UK North Sea2013 sees 44% rise in North Sea ? elds starting production but 28% drop in exploration and appraisal drilling The number of ? elds which began Of the 13 ? elds brought on-stream last Sadler said: “The North Sea industry producing oil and gas in the UK hit its year, 84% were eligible for tax allow- is complex and companies operating in highest level for ? ve years in 2013, as a ances, pointing to a positive industry there have to consider many factors. De-number of operators focused on devel- reaction to the government incentives in spite the high oil price, margins are tight opment activity. This is according to the place. However, a total of only 47 explo- and the drop in drilling during 2013 latest report into offshore activity from ration and appraisal wells were drilled most likely re? ects the increased costs Deloitte, the business advisory ? rm. The on the UK Continental Shelf (UKCS) in of operating. Staff costs remain high and report, detailing activity across North 2013, compared with 65 in 2012 – a de- access to equipment such as rigs, which West Europe over the last 12 months crease of 28%. During the same period, are limited in number, drives prices up-and compiled by Deloitte’s Petroleum the Norwegian Continental Shelf (NCS) wards. “Nevertheless, we are seeing Services Group (PSG), found the num- saw a 41% increase in drilling activity. evidence that government incentives are ber of UK ? elds which started produc- Graham Sadler, managing director of helping to stimulate ? eld developments tion rose by 44% in 2013 (up from nine Deloitte’s PSG, said that more needed - even historic discoveries - with Chev-in 2012 to 13 in 2013). This ? gure rep- to be done to encourage drilling on the ron’s recent announcement that it will resents the highest number since 2008, UKCS, including incentives for explora- start work on the Alder ? eld, which was when 16 ? elds were brought on-stream. tion activity. discovered in the 1970s. March 201416 MTRMTR #2 (1-17).indd 16 MTR #2 (1-17).indd 16 2/25/2014 10:05:23 AM2/25/2014 10:05:23 AM