The North Sea Transition Authority have published the 2021 UK oil and gas reserves and resources report, which finds that petroleum reserves remain at a significant level. Official government forecasts suggest that oil and gas will remain an important and critical part of our energy mix as we transition to net zero.

Official government forecasts suggest that oil and gas will remain an important and critical part of our energy mix as we transition to net zero.

Managing the basin’s declining production to maximise value from the United Kingdom Continental Shelf (UKCS) is still vital to meet our energy demands as long as they exist, as well as reducing reliance on imports.

The report finds:

• The UK’s petroleum reserves remain at a significant level. The NSTA’s estimate for proven and probable (2P) UKCS reserves as at end 2021 is 4.0 billion boe, 0.4bn boe lower than as at end 2020.
• In 2021, about 490 million boe (mmboe) were produced, but only around 40 million boe net were added to 2P reserves, which equates to a reserve replacement ratio of +9%. Despite the reduced activities across the industry due to the Covid-19 pandemic, 150 mmboe were matured by the granting of consent to 1 new field development and 6 field development plan addenda.
• The UK’s contingent resource level is significant with a central estimate of discovered undeveloped resources of 6.4 billion boe. Much of this resource is in mature developed areas and under consideration for development. The maturation of contingent resources presents a significant opportunity for the continued development of the UK’s petroleum resources. This will require substantial investment in both new field developments and incremental projects.
• In aggregate, UKCS petroleum reserves and discovered resources are both approximately 70% oil and 30% gas, when expressed in oil equivalent terms.
• Due to the reduced activities levels due to the Covid-19 pandemic, the limited exploration drilling discovered less than 50mmboe in 20212. A key part of exploration stewardship is now to progress the many attractive opportunities within the prospective resource portfolio into drill-ready prospects, and into subsequent discoveries.
• The mean prospective resources in mapped leads and prospects are estimated as 4.0 billion boe. This is supplemented by an additional mean prospective resource of 11.2 billion boe estimated to reside in plays outside of mapped leads and prospects.
• 

UK Reserves and Resources

The NSTA estimate for remaining UK recoverable petroleum resources, include Reserves, Undeveloped Resources and undiscovered petroleum resources. A total of some 46.4 billion boe of oil and gas had been produced from the UKCS by the end of 2021.

Overall oil and gas reserves as at the end of 2021 showed a decrease compared to end 2020. This is a result of production of around 490 mmboe in 2021 not being offset by additions to the reserves base as a result of Field Development Plan (‘FDP’) approvals or additional reserves adjustments for producing fields.

Contingent resources also showed a decrease compared to end 2020. This is due to the promotion of the 150mmboe in the FDP and FDPA’s to reserves and revised estimates from operators, offset by the exploration success.

The mean prospective resources in mapped leads and prospects are estimated as 4.0 billion boe. This is supplemented by an additional mean prospective resource of 11.2 billion boe estimated to reside in plays outside of mapped leads and prospects. Ultimately the Yet-toFind potential of the UK Continental Shelf will be determined by activity levels. The ultimate volume that can be delivered will depend critically on how industry generates new targets, the efficiency of resource progression from plays through to drill-ready prospects and the industry maintaining its ‘social licence to operate’. 

Reserves progression

Reserves reduced from 4.4 billion boe as at end 2020 to 4.0 billion boe as at end 2021. This was a result of:

• Production during 2021 of 490 mmboe
• One new field development consented to and six FDP addenda for incremental projects in producing fields in 2021 resulted in 150 million boe movement from contingent resources to reserves.
• A reduction to the reserves estimates for producing fields of -110 mmboe. This was due to positive additions from other infield activities, improved field performance and life of field extension (CoP deferral), but with offsetting downward revisions in other fields and life of field reductions (CoP acceleration).

Reserves replacement ratio

The underlying reserves replacement ratio in 2021 was +9%. 150 mmboe of reserves were added as a result of one Field Development Plan and six Field Development Plan addenda consents, while 110 mmboe were revised down by operators. This compares to production of around 490 mmboe in 2021. Replacement of proven and probable reserves by resources maturation remains an issue.

Access the full report here.

KeyFacts Energy Industry Directory: NSTA   l   KeyFacts Energy news: North Sea Focus

If you would like to discover more about KeyFacts Energy, contact us today and we can arrange a 15-minute online meeting to review our database of over 2,600 continually updated 'country-specific' oil and gas and renewable energy profiles from a selection of 144 countries. Find out how you can instantly identify companies with operational activity in your chosen country, 'fine-tune' your news or company selection based on industry category, energy type or regional location and additionally benefit from one to one contact with us to ensure maximum online and social media exposure for your company.