Significant developments mean significant investment
The size of the prize these wells are targeting in the Greater Warwick Area is potentially huge – our £139 million campaign will be targeting 604 million barrels of contingent resources at the Lincoln discovery and 935 million barrels of prospective resources at the Warwick prospect.
The work is part of our efforts, alongside operator and partner Hurricane Energy, to further prove up an area with vast potential – the licences form part of the Rona Ridge, which independent analysis revealed contains 2.6 billion barrels of reserves and resources. To put that into perspective – that is around a tenth of what experts believe is left in UK waters in total.
Assuming success with the three wells we drill next year, we will then look to invest even further in the fields, linking one of the wells to a floating production vessel already on its way to the region to start early production from Hurricane’s nearby Lancaster field. It also opens up the opportunity for a further three wells and ultimately full field development for the Greater Warwick Area, providing a boost to the UK’s energy sector with further domestic production at a time of great uncertainty globally, as well as helping to maximise economic recovery from the UK Continental Shelf.
With developments at this scale comes investment running into the billions of pounds – BP’s Clair Ridge development will come in at £4.5 billion – supporting a UK supply chain which has suffered in recent years as the oil price collapsed. Not only that, it gives the service industry the opportunity to build expertise in frontier conditions, giving them the platform to export their skills across the world long after the work here is done. In the week of Oil & Gas UK's annual Share Fair - a meeting of operators and supply chain to discuss shared opportunities and challenges across the UK Continental Shelf - commitments like these give us hope for a successful future in both mature and fledgling basins.