Statoil and BP continue to the most active operators on the UK Continental Shelf (UKCS) and the Norwegian Continental Shelf (NCS) according to the latest report from the Energy Industry Council (EIC).
Image: Fig 1.
The report, based on EICDataStream, the EIC’s global project database that tracks over 10,000 active and future projects worldwide, found that Statoil has been by far the most active operator on the NCS over the last four years although a number of other international operators are also active.
These other operators are responsible for six FEED (front end engineering design) contracts, 26 EPC (engineering, procurement & construction) and 17 Subsea/SURF (subsea, umbilicals, risers amd flowlines) contracts between them.
Figure 1 shows the top 10 most active operators on the NCS in terms of the number of major contracts awarded across 337 developments between January 2010 and July 2014.
Here, Statoil leads contracting activity on the NCS, awarding 144 major contracts across 37 developments. Between Jan 10 and Jul 14, Statoil awarded a total of 61 EPC contracts, 27 FEED contracts and 56 Subsea/SURF contracts. The majority of Statoil’s investments in this period can be characterised by three types of developments: major new field developments; the tie-in of satellite resources to existing fields via its fast-track programme; or the redevelopment of existing assets to increase production and extend their lifespan.
Although on a much smaller scale, Statoil is joined in the top ten by a number of international oil companies including ConocoPhillips, Total, Shell and BG Group who have awarded a total of six FEED, 26 EPC and 17 Subsea/SURF contracts between them. ConocoPhillips has made significant investments into redevelopment and decommissioning projects at its giant Eldfisk and Ekofisk fields, awarding 10 EPC and four Subsea/SURF contracts across these developments.
The other international companies are also largely involved with redevelopment work, apart from Shell who is progressing its greenfield Martin Linge HPHT field development (two FEED, five EPC, one Subsea/SURF), originally discovered in 1975.
On the UKCS (see figure 2, left), BP continues to lead the way in contracting activity in recent years having awarded 35 major contracts across seven North Sea developments over the past four years.
In total BP has awarded four FEED contracts, 16 EPC contracts and 15 SURF contracts, over half (20) of which are associated with expansion projects. BP’s main area of investment is the UK Atlantic Margin, home to both the Schiehallion and the Clair heavy oil field (Phase 2) expansion projects, where the operator has awarded a total of 17 major contracts.
BP is joined in the top ten by ConocoPhillips, Chevron, Total, GDF Suez and Statoil, who together account for 58 major contracts awarded. These operators are accountable for contract awards on the majority of high-capital investments on the UKCS, including heavy oil field developments in the Northern North Sea and new projects in the frontier region West of Shetland.
Second to BP is Nexen, a previously independent oil company that was acquired by Chinese national oil company CNOOC for US$18 billion in February 2013. Nexen awarded 19 major contracts across four developments, including four FEED contracts, nine EPC contracts and six Subsea/SURF contracts in the Central North Sea. Nexen’s main area of investment has been the Golden Eagle Area Development (Golden Eagle, Pink and Hobby oil fields), for which the company has placed 12 major contracts (four FEED, seven EPC, and one subsea/SURF) since January 2010.
Talisman Energy (Sinopec), along with independents Ithaca Energy, Enquest and Premier Oil have awarded 47 major contracts in the Central North Sea, including work on some large-scale greenfield projects and redevelopment projects. Statoil has a major presence on the UKCS as well as the NCS, awarding a total of 10 major contracts. All of Statoil’s major contract awards have been made on the Mariner and Bressay heavy oil fields in the Northern North Sea. Mariner is the largest single offshore UK development for more than a decade, representing an estimated US$7 billion in investment.
To find out more about the EIC, please visit the UK Pavilion at ONS and the EIC stand – 980 in Hall J.
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