FORCE Conference, Stavanger – 8th/9th April, 2015 Underexplored Plays of the NCS
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FORCE Conference, Stavanger – 8th/9th April, 2015 Underexplored Plays of the NCS
Influencing Factors (1)
Energy Supply: ▪ With some 97% of energy needs coming from Hydro-power, Norway exports
majority of it’s HC production. ▪ UK consumes all production to meet energy needs – now a net importer of HC.
Fiscal regimes: ▪ Norway stable with high level of state participation; UK has been continually
adjusting the taxation policies with PRT etc. Hence the drive for urgency by operators to recover investments quickly.
▪ Light touch in UK versus State participation has this reflected on activity levels. ▪ High level of State Oil Company participation in Norway. (UK BNOC privatized
in 1980s?)
Licencing: ▪ UK has opened up more of the UKCS to exploration with more licencing
rounds; Norway has limited these and only recently increased the areas made available for licencing.
FORCE Conference, Stavanger – 8th/9th April, 2015 Underexplored Plays of the NCS
Influencing Factors (2) Operators: ▪ The participation of many independent operators and a reduced influence
of the Major IOCs on UKCS. Drives competition and the willingness to accept higher risked opportunities (linked to higher rewards for success). Similar picture emerging in Norway and starting to reap rewards (e.g. Lundin).
Physical Environment: ▪ Majority of NW European CS has severe working conditions
▪ In relative terms two of the main Norwegian CS areas provide the
harshest – Limiting drilling windows etc. – Higher costs mean larger volumes are required to make these attractive to
explore. – The development of a number of technologies has enabled access to more
FORCE Conference, Stavanger – 8th/9th April, 2015 Underexplored Plays of the NCS
What Lies Ahead
▪ What to the future prospectivity on NCS, the programme over the next two days looks as if it will help us to understand where new exploration opportunities and plays may exist.
▪ Implementation of new and enhanced technologies, seismic and other subsurface surveys in detecting HCs and reservoirs. Supported by improvements in drilling and production technologies supported by remote facility operations.
▪ Density of drilling – graduating further northward – BUT do not ignore
heartlands (e.g. Johan Sverdrup).
▪ NFE or ILE is another area that should not be ignored if we are to optimise these valuable resources that remain below our CS. – The tail end of the creaming curves.
FORCE Conference, Stavanger – 8th/9th April, 2015 Underexplored Plays of the NCS
Geologists need to be open to new ideas “Expect the unexpected!”
It takes a Reservoir, Source and Trap/Seal to make a field. Technology can be the enabler but not the necessarily the answer – a few examples of where to expect the unexpected.
– “Oil is found in the mind of Geologists”.
– High Risk Strat Plays.
– Palaeozoic and Other Oil Source Rocks?
– Where does Migrating Oil Go when there is no Ordinary
FORCE Conference, Stavanger – 8th/9th April, 2015 Underexplored Plays of the NCS
High Risk Strat Plays
▪ Thick sands in basin, thick shales present up-dip, proven oil kitchen, so where is the trap? – Relatively poor imaging on 3D seismic, no amplitudes recognised. – Partnership failed to agree on this strat play, GCOS ~10%, one went
non-consent & did not participate. – Key risk was lack of defined sealing trap along strike
▪ This turned out to be Buzzard field, >1 billion Bbl STOIIP, largest
FORCE Conference, Stavanger – 8th/9th April, 2015 Underexplored Plays of the NCS
Palaeozoic and Other Oil Source Rocks?
▪ Upper Jurassic is a world class source: – Still yielding many oil, gas finds – What happens where we lack mature U.Jur?
▪ West of UK/Norway median line we have:
– Devonian oil source in Moray Firth – Lower Carboniferous oil shale in Central Scotland – Carboniferous oil shales in Northern England – Liassic oil source rocks e.g. Toarcian hot shales
FORCE Conference, Stavanger – 8th/9th April, 2015 Underexplored Plays of the NCS
Where does Migrating Oil Go when there is no Ordinary Reservoir? ▪ Super rich oil source rocks expel more oil than there are
conventional traps and reservoirs. ▪ Can we define unusual tanks for the oil to fill?
– Lancaster field consists of mature oil source rock abutting fractured granite basement with a Lower Cretaceous top seal. ▪ Many 100’s m of oil column.
– Rosebank-Lochnagar has oil filled sands sandwiched between lavas: ▪ Used stacked seismic cables to image in/below lavas but now can
probably achieve the same with inclined streamer geometry which is already in use offshore Norway.
FORCE Conference, Stavanger – 8th/9th April, 2015 Underexplored Plays of the NCS
Concluding Remarks
▪ Both the NCS and the UKCS can still offer attractive new exploration
potential. NCS still has some areas needing to reach full maturity.
▪ Attainment of production and a tax shelter is more important than ever for efficient UKCS exploration.
▪ As a geologist – use the past as an insight to the future. How many new plays have opened up in mature areas where we have ignored them in the past. This means not only looking below you but also above you – you may have encountered it without knowing it.
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