More properties are changing hands in the U.K. sector of the North Sea, and small companies have been driving the action. At the end of 2005, 143 companies owned acreage in the U.K. Continental Shelf, and 34 of these were new to the region, reports Hannon Westwood, a Glasgow-based upstream consulting company. The market changes can be tied directly to the efforts of the U.K. Department of Trade & Industry, which has both recruited new investors from North America and pushed existing license-holders to either drill or relinquish fallow acreage. The response has been dramatic: oil majors have reduced their noncore holdings from more than 60% of total holdings to 40% at year-end 2005. The acreage turnover will continue to be substantial. From a stock of about 1,400 blocks and part-blocks, Hannon Westwood estimates that around 700 could attract near-term investment, and a further 360 blocks wait in the wings. All told, around 1,070 blocks are expected to move into the market for third-party investment or be returned to the government for new license rounds during the next five years. For more on this, see the August issue of Oil and Gas Investor. For a subscription, call 713-260-6441.
Recommended Reading
Texas Pacific Land Declares Largest Special Dividend
2024-06-14 - Texas Pacific Land’s $10 per share dividend will cost the company approximately $230 million.
CorEnergy Restructures, Emerges from Chapter 11
2024-06-13 - CorEnergy Infrastructure Trust has restructured in hopes to return to positive free cash flow beginning 2025, while pursuing energy transition opportunities.
Producers Trim 2024 Hedges Amid Bullish Oil Prices, M&A
2024-06-14 - Meanwhile, gas-weighted players are benefitting from solid hedge books planned ahead of price uncertainty.
Exxon’s Craig Morford Retires as VP of General Counsel, Secretary
2024-06-12 - Exxon’s board of directors has elected Jeff Taylor, who joined Exxon in May, to undertake Morford’s role.
Swift Solar, with Backing from Italy’s Eni, Raises Tech Financing
2024-06-12 - Swift Solar, with backing from Italy’s Eni and others, has raised a total of $44 million for work transforming the solar energy landscape with perovskite tandem solar projects.