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LIVE

Friday, 21 November, 2008, 23:10 GMT | more >>

Wicks points to Shetlands promise

Mark Hillier

The waters to the west of the Shetland Islands are an area of particular attention as the UK works to make the most of its remaining hydrocarbon reserves, according to Energy Minister Malcolm Wicks.

Speaking at a conference organised by Norwegian industry group Intsok, Wicks noted that the UK has already produced 34 billion barrels of oil equivalent and has passed its production peak.

The minister acknowledged that the easiest oil and gas has mostly already been produced, but noted that “substantial quantities of hydrocarbons remain”. He said the UK intends to ensure that the basin remains alive for the next 25 to 30 years.

Wicks highlighted west of Shetland as an area of potential where he hopes to see the industry “create a new chapter for the UKCS".

He pointed out that the UK government’s recent Energy Review had created a task force to look at the infrastructure needs of the west of Shetland region.

That task force of licensees is intended to report to Wicks by the end of the year on prospects for the development of a new natural gas export route from west of Shetland.

“With the recent discovery of further hydrocarbons and the active consideration of developments, there exists an opportunity to establish the spine of a substantial gas supply infrastructure,” the energy review said.

Development prospects in west of Shetland waters include Total’s Laggan natural gas field, plus smaller finds like Torridon, Laxford and Victory, as well as the big Chevron-operated Rosebank/Lochnagar oil find.

Wicks also reiterated UK government hopes for the Stewardship Initiative that involves trying to ensure that as much oil as possible is produced from producing fields. He said he hopes the initiative will help encourage the recovery of an additional 3 to 5 billion barrels of oil equivalent from the UKCS.