Key North Sea projects currently in the pre-final investment decision (FID) phase could deliver nearly 1.5billion barrels, though further mergers and acquisitions activity will be required to unlock all opportunities, says Wood Mackenzie.
In a new report titled how much more oil and gas can the UK North Sea produce?', the Verisk-backed analyst suggests that indigenous oil and gas still has "a major role to play" in the UK's energy mix, pointing to more than 1.4billion barrels of liquids held in pre-FID projects.
Energy Voice says the pack is led by the sizable Rosebank and Cambo fields west of Shetland, but also includes the redevelopment of the Buchan field.
However, given the size of many of the operators, further M&A activity will be needed to bring them to fruition, the report says.
The group’s research director for North Sea upstream, Neivan Boroujerdi, said: “By 2050, UK North Sea production will have largely ceased. But even in a net zero scenario, demand will persist with emissions being offset by carbon capture and storage (CCS) and nature-based solutions.
“Current levels of production could be maintained for the next decade, underpinning energy security and safeguarding jobs. But the UK is sorely lacking in gas and will be heavily reliant on imports in all scenarios.”