OGA Overview 2019 - ogauthority.co.uk · 4.1 prospective resources in mapped prospects and leads 7.5 unsanctioned (5.4 from proposed new developments and other discoveries) 5.4 sanctioned

OGA Overview 2019

Contents

Front cover Courtesy of BP Exploration

Introduction from the Chief Executive 3Current context 4-5Vision 2035 6The big opportunity 7Energy transition and Vision 2035 8OGA background 9Regulatory framework 10Exercise of the OGArsquos powers 11Delivering value 12Changing face of ownership 13Fiscal measures 14UK performs favourably 15UKCS commercial landscape 16Substantial potential 17Resource base 18Project activity 19UK oil and gas production projectionscenarios 20Measuring success 21

Create the right conditions 27

Significance of the supply chain

Drive regional development 28-29

Area plansMarginal discoveries

Leverage technology and data 30-33

Leverage technologyTechnology Digital transformationOGA data centre

Improve decommissioning efficiency 34-35

Reducing decommissioning costsDecommissioning

Develop people processes and systems 36-40

Onshore licensing and consents The way forwardOil amp Gas MER UK Forum Steering Group and Task ForcesMER UK in actionExperienced leadership

Who does what in UK government 41 Key publications 42-43

Revitalise exploration 22-23

Revitalise exploration Exploration

Improve asset stewardship 24-26

Asset stewardship ndash driving improvement Further example operator benchmarksWells

3

Introduction from the Chief ExecutiveThe Oil and Gas Authority (OGA) works alongside the UK oil and gas industry and government to maximise the economic recovery of the UKrsquos oil and gas resources (MER UK)

Our official forecasts estimate there are potentially over 20 billion plus barrels of oil equivalent (boe) remaining in the UK Continental Shelf (UKCS) and decades of productive life Vision 2035 co-created with industry sets out two specific ambitions to add an additional 3 billion barrels of production by 2035 and to grow supply chain turnover by being a world leader in specific sub-sectors doubling the UKrsquos share of service sector exports

Oil and gas still accounts for about 75 of the UKrsquos primary energy demand with around 60 met by the UKCS Oil and gas are expected to play a key role in the global energy mix for decades

However Vision 2035 can play a meaningful role in the UKrsquos energy transition There are opportunities for closer partnerships between oil and gas and renewables for mutual gain while carbon capture presents an opportunity to re-use existing infrastructure Likewise a healthy oil and gas industry can support the continued growth of our world-class domestic supply chain helping it diversify into alternative energy markets

The OGA has a firm focus on maximising economic recovery of oil and gas and our central production projection out to 2050 is now 39 billion barrels higher than it was in 2015 A mix of field life extensions infield reserve additions enhanced oil recovery new projects and discoveries have helped add this additional 45 in production

One of the keys to unlocking these and other opportunities are data and digitalisation We continue to maximise the value from the wealth of UKCS data making it openly and transparently available for all and our new National Data Repository promises to be a real game-changer

Our stewardship data provide evidence that industry is collaborating to sustain improvements Compared to 2014 costs are down production is up and the UKCS is globally competitive Decommissioning activity has progressed well with an impressive 7 (like for like) cost reduction in just one year Operators are clearly thinking more strategically about technology uptake and there is evidence of more collaborative partnering with the supply chain and improvements in commercial behaviours more generally

Looking ahead industry must focus on sustaining cost efficiencies and progress higher levels of more efficient drilling

Wersquore asking industry leaders to work towards the exciting future which Vision 2035 offers itrsquoll require exceptional partnerships and business models delivering value at pace operational excellence across the lifecycle and widespread deployment of technology including digital Most importantly in my opinion itrsquoll require full inclusion diversity and genuine workforce engagement

Dr Andy Samuel Chief Executive

4

Current context

Performance has turned around

Infrastructure

Exploration success rates Resources

10bn

Development

54bn boein production or under development

NNS

WOS

CNS

SNSIS

wells drilled to date7800+

pipelines20000 kms+

fixed installations320+

subsea systems250+

Remaining potential 10bn - 20bn+

20bn+

UKCS projects 2017 2018

Number of projects 7 19

CAPEX (pound billion) 07 38

Reserves (mmboe) 100 470

NPV10 (pound billion) 11 42

245839

1

Technical volume mmboe

Technical finding cost $boe

2014 2018

5

Production barrels of oil equivalent per day (boepd)

142 157 163 163

million million million million

2014 2015 2016 2017

Production efficiency (PE) Unit operating costs

Supply chain

pound27bnturnover

c40 through exports and supporting

c80 of UK oil and gas jobs

Source ndash Oil amp Gas UK and EY

40 80

2018

17million

280gt 280000 jobs in the UK delivered through or supported by upstream oil and gas activity

Jobs

Source ndash Oil amp Gas UK

6

pound420bn

pound280bn

pound350bn

pound500bn

Rev

enue

Tur

nove

r (poundb

illio

n 2

016

pric

es)

Baseline supply chain turnover from exportsVision supply chain turnover from exportsBaseline gross production revenueVision gross production revenue

pound150bn Additional turnoverpound140bn Additional gross revenue

Total value addedIncreased UKsupply chainturnover fromcapturing largershare of exportsmarkets

MER UKIncreased grossrevenues fromUKCS oil and gasproduction

2014 20350

5

10

15

20

25

30

35

Realise full hydrocarbon potential of the UKCS

World class competitiveness

Expand service sector range market coverage double exports

Increase the prize by half again over the next 20 years

Vision 2035

Vision 2035 ndash A single compelling vision for the offshore oil and gas industry

7

The big opportunityDigital Simplification

Efficient decom Use it or lose it

Consolidation

Transparency

Extend life

Halve well costs

Exports

Technology

Job and skills

Collaboration

8

Energy transition and Vision 2035

MER UK and the energy transition

Looking forward oil and gas will continue to play a role in the UK energy mix The OGA fully supports the transition to a low carbon economy and works collaboratively with industry government and others to harness the necessary expertise skills and infrastructure of the UK oil and gas sector to help achieve it

Activity Schematic Potential Applications

Platform Electrification

bull SNS power existing gas hubs from nearby windfarms

bull WoS use floating offshore wind to create ring main

Power-to-GasH2

bull SNS and EIS use redundant infrastructure

Gas-to-Wirebull SNS and EIS convert late-life

infrastructure into offshore power generation

CO2 transport and storage

CO2bull SNS and EIS use

redundant infrastructure

North Sea Wind Power Hub

bull Integrate UK offshore power and gas (including hydrogen) activities

Lowering emissions offshore emissions trading scheme in place

OGA screening for potential capture use prior to decom

Oil and gas and renewables actively partnering

To maximise economic recovery lower emissions and unlock CCUS

Gas could play prominent role in energy transition replacing coal 38tcf tight gas opportunity in SNS

Mutual benefits from linking gas production to wind power

Emissions

CCUS

Synergy with renewables

Technology

Gas

Gas to Wire

Supporting the energy transition to a low carbon economy

9

OGA backgroundCreating the OGANew independent authority created April 2015 became government company (GovCo) on 1 October 2016

Effective stewardship of resources

New powers better resourced and funded

Catalyst for change and facilitator of action

Encouraging collaboration and behavioural change

Focused on delivering regulatory excellence and a high-quality service and value-for-money to industry

Providing expertise and evidence to HM Treasury

Transparency

OGA role

OGA values accountable fair robust and considerate

The OGA regulates the exploration and development of the UKrsquos offshore and onshore oil and gas resources and the UKrsquos carbon storage and gas storage and offloading activities

The OGA has an important role to promote investment in the UKCS create value in the UK through exports and develop the prosperity of the industry including wider supply chain

Regulate

Promote

MERUK

The OGA has a critical role to influence and encourage a culture of greater collaboration on the UKCS improve commercial behaviours and help enable a more efficient industry

Influence

10

Regulatory frameworkLegislative Context

Supporting Obligations

Execution

Cost reduction

Guidance

SanctionNotices

Statutory non-statutory and Stewardship Expectations

Enforcementnotice

Financial penalty notice

Operator removal notice

Licence revocation notice

Central Obligation MER UK Strategy lsquoto take the steps necessary to secure that the maximum value of economically recoverable petroleum is recoveredrsquo Includes safeguards to protect and promote investment

Infrastructure Act 2015 Petroleum Act 1998Energy Acts 2011 and 2016

RegulatoryPowers

Facilitation Licensing regime Strategies and delivery programmes

MER UK plans

Regulatory powers

Non-binding dispute resolution

Information and samples Meetings Licence

model clausesThird party

access

Collaboration

Exploration Regional development

Asset stewardship Technology Decommissioning

Sanctions

Principal Objective The principal objective is that of lsquomaximising the economic recovery of UK petroleumrsquo

11

Exercise of the OGArsquos powers

The OGA uses the full toolkit to drive MER UK outcomes

The OGA uses lsquomeasured escalationrsquo to manage lsquoissuesrsquo where the OGA seeks primarily to influence the outcome and lsquocasesrsquo where the OGA will consider intervention with regulatory powers

Separately the OGA enforces licence obligations and deadlines to drive the pace of delivery and ensure that the right assets are in the right hands

1Stewardship

2Facilitation

Esca

latin

g le

vel o

f OG

A in

terv

entio

n

Operational escalation

3Enhancedfacilitation

OGApowers4

Formalintervention

Regulatory intervention

5

Key steps in the lsquoMeasuredrsquo Escalation Process

Striking the right balance

RewardsSanctions Enforcement noticeFinancial penalty notice up to pound1mLicence revocation Operator removal

Greater value via collaborationTransparency and better data accessTimely effective decision making

MER UK benefits all

Asset Stewardship

Strategic use of data

Use

of P

ower

sOGA interventions

Successes to date60

Facilitation9

Enhanced facilitation30

Formal intervention16

OGA Powers5

Issues

Cases

Area Plans

12

Delivering value

Systematically removing barriers to deliver value for investors

Significant resource potential

The UKCS has between 10-20bn+ barrels yet to be produced

Access to infrastructure

OGA has well established powers to facilitate development tie backs and help resolve tariff issues

Decommissioning

The OGA is working with industry to develop strategic decommissioning plans to reduce costs

UKCS exploration

The OGA provides flexible licensing terms and no-cost data to industry

UKCS operating environment

Asset stewardship is driving improvements and highlighting opportunities

Right assets right hands

MampA spend of $56bn in 2018 with 22 assets changing hands

Source Wood McKenzie

Energy transition

The OGA supports energy transition and the exciting opportunities that this brings

UKCS operating costs

Lifting and development costs substantially reduced

13Changing upstream mix in the basin 2014 to 2018

Changing face of ownership

41 thousandboed

Small cap

Mid cap

Large cap Supermajor

Private equityInfrastructure funds

Other

Utilities

23

Current production changed hands in past 5 years

41 thousandboed

Small cap

Mid cap



Other

Utilities

Average Daily Production

Operator shares of infrastructure based

on throughput

2014

2018

2018Production

2014Production

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other

Utilities

Key

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other

Utilities41 thousandboed

Small cap

Mid cap



Other

Utilities

Each pie chart represents a geographical area

14

Supplementary Charge reduced

from 32 to 10

Petroleum Revenue Tax permanently

reduced from 50 to 0

Introduction of new basin-

wide Investment Allowance

2 x pound20 million for new geophysical surveys in 2015 amp 2016 and pound5m for explorationdata in 2017

From 1 November 2018 transferable

tax history will give buyers

increased certainty they can get tax

relief for their decommissioning

costs

In line with UK Governmentrsquos Driving Investment principles various measures introduced including packages worth pound13 billion and pound1 billion introduced in 2015 and 2016

Delivering on Driving Investment

Fiscal measuresThe three Driving Investment principles for tax policy-making

The overall tax burden will need to fall as the basin matures

In setting fiscal policy the government will consider the wider economicbenefits of oil amp gas production in addition to revenues

A lsquofair returnrsquo will take account of the global competitiveness of commercial opportunities in the UK and UKCS commodity prices and costs

1

2

3

15

Leading on returns payback break-evens and value

UK was already fiscally competitive ndash made more so by Budget measures

UK performs favourablyIRR and reserves Payback periods Break-evens and value per bbl

Source OGAWood Mackenzie

Number of projects in each regionPayback period years

UK post tax IRR is 13 higher than next highest basin

MER UK Forum and Task Forces the OGA and industry jointly committed to maintaining current cost disciplines

UKCS still has diverse portfolio of opportunities from large complex developments to small low cost tie-backs

Opportunities and dramatically lower unit costs mean UKCS boasts world-class payback periods

Recent investments in UK projects have delivered world-class returns in terms of breakeven and value per barrel

OGArsquos marginal discoveries initiative illustrates the continuing potential of the UK

16

The OGA supports and encourages innovation in new models to finance UKCS operations for example

Changing commercial environment to deliver right assets right hands

UKCS commercial landscape

For further examples of the OGA and Industry working together to achieve MER UK please refer to our website wwwogauthoritycouk The OGA does not provide endorsements or investment recommendations

Vendor finance

Private equity

Late life specialists

Innovative development models Decommissioning

Chrysaor and Baker Hughes commercial partnership

Baker Hughes to fund a portion of CAPEX for a potential higher return

Risk and reward sharing drilling programme

Operator and service provider working together to realise value

Siccar Point acquisition of OMV UK

$1 billion transaction backed by Blackstone and Blue Water Energy

Siccar Point becomes a full lifecycle oil and gas company

Example of an asset portfolio which is now a company priority

BPEnQuest SVT and Magnus transactions

No cash upfront from EnQuest transaction funded by deferred consideration

Operator focussed on bringing down costs and extend life

BP has stated this transaction highlights right assets right hands

Tolmount development

Antin Infrastructure Partners to part own platform and pipeline and pay for terminal upgrade

Development expected to produce 500bcf of gas with peak production of 300 mmscfd

First gas target Q4 2020 as per licence commitment

BP and Serica Erskine transaction

BP responsible for costs up to a gross pound174 million with pound3132 million net to Serica

BP will meet Sericarsquos estimate of decom costs at the point of sale

Innovative approach to facilitate right assets right hands

17Diverse opportunities for diverse investors

Substantial potential UKCS offers significant value for investors

West of Shetlandbull Deepwater subsea development hub least developed regionbull High number of exploration awards in 30th Round with 75 increase in licensed acreagebull Potential to unlock large oil resource volumes by making gas export availablebull Significant gas potential with over 10TCF of resource base (Trillion cubic feet)

Northern North Sea bull Mature area with well established fields and infrastructurebull Recent field redevelopments eg Penguins (Shell) bull Incremental gas resource opportunities (Quad 9 Gas)bull Opportunities for decommissioning specialists

Southern North SeaEast Irish Sea bull Opportunity to deliver new developments and leverage field developmentsbull Potential to deploy new technology to unlock tight gasbull Collaborative relationship with renewables sectorbull Significant decommissioning projects in near to mid term

Central North Seabull Significant prospectivity and marginal discoveriesbull Mature near field infrastructure and export capacity availablebull Number of recent exploration successes

18

Resource base(n

umbe

rs in

billi

on b

oe a

s at

end

201

7)

2017

changes

018

06

Billion boe moved into sanctioned from project approvals in 2017

Billion boe produced in 2017 with 74 production efficiency

Billion boe added from new discoveries in 2017

41 prospective resources in

mapped prospects and leads

75unsanctioned

(54 from proposed new developments and other discoveries)

54 sanctioned

441 produced to date

Prospects Leads and Plays

Rang

e of

tota

l pot

entia

l res

ourc

es

ca 1

0 to

20b

n bo

e

01

2017 Resource and reserve maturation

Significant remaining resource potential

112 in plays

192018 sanctioned projects added 490 mmboe to reserves

Project activitySanctioned 2018

The OGA does not provide endorsements or investment recommendations Those projects listed are not necessarily a definitive list and the locations are indicative

Sanctioned 2017Sanctioned 2011-2016

NNS

WOS

CNS

SNSIS

Lancaster EPS

Alligin

Galleon

Tolmount

Fram

Buzzard Phase 2

Culzean

Arran

Finlaggan

Columbus

Vorlich

Joanne

Captain

Shearwater Re-Plumb

Orlando

Penguins

West Brae

Ballindalloch

Dunlin Bypass

Mariner

Utgard

Buckand

20

Strong progress towards Vision 2035

00

05

10

15

20

2015

2020

2025

2030

2035

2040

2045

2050

yadtnelaviuqe lio fo slerrab noillim

Vision Scenario

February 2019 Projection

March 2015 Projection

An additional 39bn boe added to projections since March 2015

Contributing factors to the 39bn boe added since March 2015

Estim

ated

add

ition

al c

ontr

ibut

ion

(bn

boe)

0

02

04

06

08

10

2015-18Extra

ProductionPostponing

COP

InfieldReserves

Aid EORProject

SanctionsOther

factors

RecentEampA

ActivityFuture

Exploration

094

090

028

061

025030030032

UK oil and gas production projectionscenarios

39bnboe

Additional

21

Measuring success

Costs mitigatedpoundm 845

Value of investmentspoundbn 37

Time saved to industry (fast-tracked consents) 3828

DAYS

Success metrics Impact on industry Action by the OGA

341 success stories were recorded between 2015 and 31st January 2019 across the OGA in partnership with industry and government

The OGA has developed a success stories tracker dashboard and methodology to allow impact to be quantified (relative to what would have happened in the absence of support or intervention) using three key metrics

Expected future volume of oil and gas production

Capital expenditure committed to new projects

Reduced or avoided costs through improved or accelerated outputs

Tripartite barrels(mmboe)

Protect existing barrels mmboe

852

Newbarrels added mmboe

10661918

Production volume

Technologies

Exploration opportunities

Supply chain initiatives

Decommissioning opportunities

Decommissioning cost reduction

Influence

Promote

Regulate

Decommissioning cost savings(poundM)

Actual poundM 308

Forecast poundM 193501 Resource maturation

22

Key

Revitalise explorationThe OGA has opened up large areas of acreage to industry that offer the opportunity for high-impact exploration growth ndash now looking to industry to drill more targeted wells based on enhanced data

4

444

4444

44 44

4

4

44444

44

444444

444444

44 4

44

4444

4444444444444 44

44

Legend4 Exploration wells drilled since OGA established

Restricted Blocks30th Round Awards31st Round Blocks Offered31st Supplementary Round Blocks OfferedLicenses awarded in previous rounds

For indicative purposes only

4

4

4

4

4

4

4

4

Greater Buchan Area

Proposed future licensing plan

2019 2020 2021

31st

supplementary Q1

32nd

33rd

All rounds alternating between frontier and mature areas

Mature Areas

Frontier Areas

Round opens

Round closes

Licence awards

Frontier Areas Mature Areas

Rev

italis

e ex

plor

atio

n

Note Licence Rounds and timings are contingent on the Strategic Environmental Assessment (SEA) with the next SEA assessment planned in 202021

Mature - Greater Buchan Area

The OGA has provided substantial incentives and data packages to support licensing rounds and help stimulate interest including

pound40 million UK govt funding for new seismic acquisition in frontier areas and reprocessing legacy data

Digital geological maps to promote enhanced regional understanding prospect and discovery reports

Post well analysis of 98 exploration and appraisal wells in the Moray Firth and the UK Central North Sea

In support of the 32nd licensing round the UK government has also provided pound5million funding for rock physics analysis and petroleum systems database

23

Rev

italis

e ex

plor

atio

n

11

14 11

090904

23

20

17 13

11

04 05

03Reserves

Prospective Resources ndash Plays

SNS (inc SW Britain for plays)

CNS (incMNSH for plays)

NNS

35

Contingent Resources (Mean volumes) ndashIn field and in development

Prospective Resources ndashLeads and Prospects

Contingent Resources (Mean volumes) ndashUndeveloped Discoveries

4716

14

08 WoS

17

25

Rockall Trough

Revitalising exploration activity

2018 performance shows continued improvement despite low well-count

Targeting yet-to-find potential new prospects amp plays

Innovative licence framework low entry barriers

Integrating exploration into Area Plans

National Data Repository (NDR) of well and seismic information

Improving performance technical stewardship and technology

Focusing on value not volume

Exploration success rates

No Exploration

Wells

Technical Success Rate

Technical finding cost

$boe

Technical Volume mmboe

2014 13 69 9 83

2015 15 53 5 115

2016 11 45 5 64

2017 15 47 35 131

2018 7 43 1 175

24

Impr

ove

asse

t ste

war

dshi

p Asset stewardship ndash driving improvement

Rationalised industry surveys A single source of current aligned and robust data covering the whole asset life cycle across the UKCS

Asset Stewardship Strategy defines good asset stewardship and sets in place a framework for delivering monitoring and measuring continuous improvement

LEADS

PLAY

PROSPECT

POTENTIALIN

FIELD

SANC

TIO

NED

DEVE

LOPM

ENTS

DEVELOPMENT

UNDER

PRODUCING

OPTIMISATION

DEVELOPMENTS

DISCOVERIES

(Mean unrisked)

CONTINGENT

RESOURCES

PROSPECTIVE

RESO

URCES

(2C)

RESERVES (2P)

PRODUCTION

All UKCS Operators

Rationalised Survey Returns via Energy Portal

Full UKCS asset life-cycle

OGA Data review and analysis

Forecasting Operator Benchmarking Industry performance Decom cost

reductionResource

Progression

Senior Leadership

Tier ZeroTier One

Tier Two

MER UK ForumMER UK Steering GroupSector DealMD MeetingsTier Zero

Progress of OpportunitiesKey Industry ThemesBenchmarkingCollaboration

Progress ProgressionMaximise ReservesEmbedding StewardshipOperator Scorecard

OperatorsExplorationNew DevelopmentsTechnologyDecommissioningCollaboration (CBQT)

Net

uni

t ope

ratin

g co

st (pound

boe

)

Operators

Benchmark operator X example

35

30

25

20

15

10

5

0

Stewardship Expectations

Key area of focus Resource progression amp production optimisation

BenchmarkingOGA now benchmarks 18 different metrics with 69 sub elements - driving industry wide performance improvements

Tiered stewardship reviewsOGA amp Operator strategic engagement framework through tiered approach

Asset stewardship is crucial to maximising economic recovery from the UKCS and to delivery greater value overall The asset stewardship expectations are embedded through regular interface with industry

25

Further example operator benchmarksProduction Efficiency (PE) Unit Operating Cost (UOC) Reserves Replacement Wells Data Cleansing

Exploration Performance Seismic Compliance Field Recovery Factor Collaboration

Colours represent year on year change

Field quality index

Rec

over

y fa

ctor

Operator X

Operator X

2017

Res

erve

s R

epla

cem

ent

Operator X

Operator X

KPI derived from basket of 7 exploration metrics

Operator X

Expl

orat

ion

KPI s

core

Operator Xpoundboe

0 5 10 15 20 25 30

Operator X

Acquisition

Processing0102030405060708090100

0102030405060708090100

Operator X

Operator X

Operator X

Impr

ove

asse

t ste

war

dshi

p

Operator X

2626 26

Wells

Wells Strategy and Wells Stewardship Expectation being developed with industry focusing on performance improvement regulatory compliance and increased activity

Leve

rage

tech

nolo

gy a

nd d

ata

The need to keep on drilling

The Story so far

Only 18 of future EampA wells (2018 to 2020) have financial approval

7800 wells drilled to date

Delivering

44 billion barrels

Significant resource potential remaining

Development drilling has fallen 50 from 2015 to 2017

19 EampA Wells

56 Development

wells

2128 Wells in

operation

2017 low well activity

Huge value from existing wells

In 2017Safeguarding 21 million boe production through interventions

Added 225 million boe production (by improving underperforming wells andor reactivating shut in wells)

33 million boe were not achieved as a result of well losses

Around 600 wells shut in with significant remaining reserves 30 of existing active well stock

but

Well abandonment

240 open water suspended EampA wells

Average age of 27 years raising the issue of mechanical integrity

All require to be permanently abandoned

Wells focus areas for industry

bull Increase drilling activity bull Increase value of new wells bull Reduce cost of well construction

bull Increase surveillance and intervention rates bull Increase productivity of wells bull Reduce losses from wells bull Reduce number of shut-in wells

bull Abandon inactive wells bull Reduce cost of well abandonment

44

27Service sector anchored in the UK enabling MER UK and exporting to the world


Working with DIT SDI UKEF and EIC

UK industry to grow by additional pound290bn ndash exports from 37 to 74

Supply Chain Action Plans (SCAP) now an integral and mandatory part of the FDP amp Decommissioning Programme approval process require operators to demonstrate how they are

SCAPs

Delivering maximum value from project activity

Delivering Field Development Plan amp Decommissioning Programme commitments

Contributing to Total Value Add (TVA) through supply chain engagement

OGA Supporting

UKNorway and UKNetherlands

Engagement and collaboration lsquoOne North Searsquo

Meet the BuyerHackathons

Operators provide opportunities and challenges to service sector

Project Pathfinder

Online project data

UK supply chainexports turnover

Vision 2035 Up to pound500 billion pounds in export value by 2035

2015pound35bn

2016pound30bn

2017pound27bn

85

60

80

Develops over 60 of new technologies

80 of UKCS workforce

Approx 85 of operator spend

Cre

ate

the

right

con

ditio

ns

28

Area plans

Creating value and driving collaboration

Driv

e re

gion

al d

evel

opm

ent

West of Shetland Gas

East of Shetland

Quad 9 Gas

Outer Moray Firth

Central Graben Area (CGA)

SNS Infrastructure Optimisation

East Irish Sea

Tight Gas

Gannet (Fulmar Bypass)

Fram Arran Columbus Vorlich

Penguins

Four plans have already moved to stewardshipPenguins Unlocking new opportunities in a mature field

Fram Arran Columbus amp Vorlich Delivering an additional 100mmboe

Gannet Protects production beyond previous export route cessation of production

Tight Gas in Southern North Sea Two tight gas infill wells have been spudded in the last 12 months in Galleon and Chiswick

Area plans integrate exploration through to decom

Optimise infrastructure extend life for MER UK

OGA establish plan amp timing ndash use it or lose it

New operators new partnerships - right assets right hands

Industry best placed to deliver detail per behavioural guidelines

Unlocking discoveries undeveloped for decades

29

Potential solutions to unlock this prize

Marginal discoveriesA significant contribution to achieving MER UK is the exploitation of over 300 undeveloped marginal discoveries discoveries which offer opportunities for clustering and aggregated discovery volumes Most are within but some are outside tie-back distance and therefore may be better suited to stand-alone type solutions

Breakdowns of discovery volumes ndash 32 bn boe of potential

WOS

NNS

MFB

CNS

SNS

EIS

WOS West of Shetland

NNS Northern North Sea

MFB Moray Firth Basin

CNS Central North Sea

SNS Southern North Sea

EIS East Irish Sea

32 bn boe of potential 0

1

2

3

Tech

nica

lly R

ecov

erab

le (b

nboe

)

Licensed

Unlicensed

30thRound

01

1

10

100

Licensed Unlicensed

0 100 200 300Discoveries

Tech

nica

lly

reco

vera

ble

(mm

boe)

Technology

Available and potential future innovations can unlock marginal developments such as

bull State-of-the-art inversionbull Advanced structural modelsbull High-angle ERDbull Improved drilling techniquebull Subsurface scope simplification

bull Low cost NUIbull Efficient topsides modificationsbull Multilateral wellsbull Tie-backs of the futurebull Standalone facilities

Contracting strategy

Novel contracting strategies including

bull Appropriate riskreward sharing and greater collaboration between operators and supply chain

bull Transactions funded by deferred consideration

bull Tariff payments once production commences based on minimum rate

bull Functional tender rather than price tender

bull Collaborative Contractor Club

Clustering

Cluster development could lead to significantly improved CAPEX efficiencies

Potential clusters of undeveloped discoveries in CNS and Moray Firth

Source OGA data

Driv

e re

gion

al d

evel

opm

ent

30 30

We work with the industry to make sure that existing technologies are deployed to their full effect and relevant new technologies are developed and used to maximise economic recovery from the UKCS

MER UK Forum ndash technology priorities and ownership

Leverage technology

OGA role

DemandExplorationTask Force

Asset Stewardship Task Force

Efficiency Task Force

Decommissioning Task Force

Supply Chain Task Force

Priorities

Technology Leadership Boardbull Task Forces Define the business needs and own eventual solutionsbull TLB Define industry priorities and engage with delivery organisationsbull Industry Technology Network UKCS Technology Managers meeting

quarterly to share learnings on technology adoption

Deliverybull Takes forward themes

into executionbull Government-backed

and industry-ledbull Solution centres Centres

of Excellence Innovation Hub and Technology Acceleration

Supply Chain

Research Academia

The Oil amp Gas Technology Centre

bull Oversees industry engagementbull Holds operators to account in

their Technology PlansAsset Stewardship Expectations

UKCS Production Efficiency in 2016

June 2017

33

22

107

16

21

8

5

18

No Submission

No plan

Limited plan

Good summary

plan

Comprehensive plan

No plan

Limited plan

Good summary

plan

Comprehensive plan

2016 Total 68 Operators


Increasing quality and detail of submitted technology plans

bull Anticipates technology need

bull Provides innovation in response to industry demand

bull World leading capabilities

bull Provides expertise knowledge and routes to funding

bull Access to advanced facilities

bull Research into early stage technology

Leve

rage

tech

nolo

gy a

nd d

ata

31

Corrosion under insulation inspection

Inspection drones

Thermite PampA

Innovative standalone facilities

Low Capex Low Opex

Re-deployable (multi-use)

Versatile production units

Unmanned buoys

Low cost reusable platforms

Tie back of the future

System simplification

Plug-n-play

Re-usable

Composite spoolable

Subseachemicalinjection

Subsea power generation

Mechanical connectors

Existing assets New developmentsOGA expectations

Operators submit technology plans

Well-identified asset needs

Demonstrate use of appropriate technologies

OGA Technology Insights ndash Industry learnings

MER UK requires best-in-class innovative technologies

Work with the Industry

Collaboration with OGTC

National Decommissioning Centre officially opened

Leve

rage

tech

nolo

gy a

nd d

ata

3232

Digital transformation

The UKrsquos first National Data Repository - new national digital infrastructure

Early in 2019 the OGA successfully launched the United Kingdomrsquos first offshore Oil and Gas National Data Repository for petroleum-related information and samples (NDR) The NDR is a key piece of the UKrsquos digital infrastructure

Leve

rage

tech

nolo

gy a

nd d

ata

National Data Repository

Over 12000 wellbores

2998 pipelines

3189 subsea installations

690 surface installations

~135 million log curves

~265000 well log images

~166000 well report images

Seismic

2D

Other

3D

3D642

104

4252

4998surveys

Other

2D

Infrastructure

Huge data collection from UKCS offshore oil and gas wells 2D and 3D seismic surveys infrastructure licences and fields

Operated by the OGA on the behalf of the nation industry and other interested parties

Enables the retention and reporting obligations of relevant persons to be discharged

Ensures that maximum value is derived from petroleum-related information by analytical techniques such as machine learning and artificial intelligence

Ensures the sustainable long-term curation of petroleum-related information and samples

Over 300 km of drill core

45 million samples of cuttings

8000 offshore wells

Links to the National Geological Repository

Wells

includes all subsea and surface installations

3333

OGA Data Centre

Supports the OGA strategy of making as much information and data publicly available as soon as possible

The OGArsquos most visited website area provides key stakeholders maximum value from wealth of UK data licence wells and field data can be queried and downloaded

Comprehensive data only a few clicks away

785MSpatial server requests

700growth in server requests

since OGA established

57k+users

Map it Download itView it Share itChart it

Drilling activity by region

Offshore licences by administrator

Leve

rage

tech

nolo

gy a

nd d

ata

34

2017Established

Cost baseline

Reducing decommissioning costsOn track for major cost reductions

Potential savings (not additive)

Decommissioning presents significant opportunities for innovation cost reduction and development of UK skills and capability and has the potential to deliver a competitive market advantage to the UK on the global decommissioning stage

2016Set Strategy Current Activities

TargetEstablishedltpound39bn

gt35 cost reduction

target

First decom cost estimate

report

Updated cost estimate report and progress

pound597bnpound58bn

pound557bn

2017 (P50) cost estimate 2016 prices

(P50) like for like 2017 inventory amp 2016 prices

(P50) updated 2018 inventory 2017 prices

Benchmarking cost reduction

performance with Tiered reviews

New micorsite to share lessons and individual

case studies

All current and future wells platforms

infrastructure pipelines and terminals

Report

Project management

Warm Phase2 | Cold

Phase3 | Removal4 | Dismantle amp Dispose5 | Surveillance6 |

1 | Operating Late-life Phase

Operating1 |

Facilities running Owner costs

Well Abandonment

Facilities Pipelinemaking safe

Subsea Infrastructure

Topsidesremoval

Substructure removal

Topside amp Substructure Onshore Recycling

SiteRemediation MonitoringTopsides

preparation

PlanningScope

Execution

ScopeProjectManagement

Determine the strategic fit vs life-cycle of asset(s) in a companys portfolioAre others more natural ownersOperators at the late-life stage Divest sufficiently early for the asset(s) to still be attractive

At late-life align organisation amp contracting strategy to maximisevalue through optimising both life-cycle costs and production

Ensure organisational structure is incentivisedqualified toact on high value decom opportunities during late-life

Stewardship Discussions with the OGA utilising the Decom Dashboard will allow cost reduction opportunities to be identified and a structured capture plan agreed

Submitting a topsides Decommissioning Programme separately to that for the substructure may give valuable timing flexibility for topsides removal esp

If issues associated with the substructure decommissioning (eg with OSPAR derogation cases) may result in delays to the Decom

Consider submittinga Decommissioning Programme aheadof Cessation ofProduction (CoP) toenable opportunistic decommissioning activities ifwhen cost-effective

eg down-cycle costs maybe lower than at other times

early regulator engagement will clarify requirements of cost-effective yet compliant decommissioning

Explore sharing costs of environmental surveys datasets with nearby Operators incl utilising existing relevant reports

Planning Scope

Impr

ove

deco

mm

issi

onin

g effi

cien

cy

35

Impr

ove

deco

mm

issi

onin

g effi

cien

cy

Minimum target of pound39bn based on industry achieving 35 improvement on 2017 P50 probabilistic estimate of pound597bn (2016 prices) ndash ultimately increased competence and cost effectiveness of operators and their contractors will deliver the targeted cost savings

Several operators are already achieving step changes in cost outcomes through adopting different approaches learning-fromsharing-with others and challenging previous norms

Engage early on decommissioning plans with operators

Publicise benchmarks using OGA Stewardship Survey data

Identify cost reduction opportunities challenges for decommissioning

Promote collaboration across industry

Support supply chain to develop capacity and efficiency

Ensure MER UK behaviour implemented

Owners costs (Project management facilities running costs)

Well abandonment

Topsides removals ndash (making safe topsides prep topsides removal

Structural removals

Structural infrastructure ndash (subsea removals site remediation monitoring)

Onshore recycling amp disposal

36

LegendUK Shale Prospective Areas

Onshore Licences


Onshore licensing and consents

The OGArsquos role for onshore oil and gas includes

Regulation ensuring that an effective licensing system and regulatory controls are in place including mitigating the risk of induced seismicity

Monitoring activity overseeing operators to ensure competency and that progress is being made on over 200 licences

Collaboration recognising that high levels of public interest demand transparency active engagement and close working with government other regulators and the Shale Environmental Regulator Group (SERG)

Features of OGArsquos onshore activity

Jurassic oil hybrid play Testing underway and drilling planned to appraise the potential of the Kimmeridge resource play

Carboniferous shale gas Hydraulic fracturing operations and 3D seismic surveys completed in 2018

Ongoing exploration At least three exploration wells expected to be drilled in 2019

Stewardship of over 50 onshore existing and producing oil and gas fields

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

The OGA priority themes were set out in 2015 and were refreshed in 2019 to refocus on the next five years with updated KPIrsquos

KPI Area KPI Measure KPI Target Timing

1 Revitalise exploration Discovered recoverable reserves

200 mmboe additional recoverable reserves (5 year rolling average) Annual

2Enhanced

asset stewardship

Recoverable reserves 80 UKCS average production efficiency End 2022

3 Cost efficiency Maintain average UOC within +- 15 of the 2017 level (2017 prices) Annual

4 Regional development Resource progression 300 mmboe from 2C to 2P annually Annual

5Improve

decommissioning efficiency

Decommissioning cost 35 reduction in forecast total decommissioning costs from 2017 baseline estimate End 2022

6 Cost certaintyFor 90 of all assets an AACE class 3 estimate

(or better) should be submitted to the OGA at least three years before each planned decommissioning activity

End 2021

7 People processes and systems Staff engagement 5 percentage point improvement

in OGA positive engagement score End 2024

38

Oil amp Gas MER UK Forum Steering Group and Task Forces

MER UK ForumSmall focused membership including industry task force

leads ministers and officials Oil amp Gas UK and chaired by the OGA Others will be invited according to the agenda

Steers the task forces discusses and reviews strategic issues such as Industrial Strategy collaboration and

senior level OGAindustry engagement

Six industry-led Task Forces focused on core areasand Industry Cultural Change Champion

MER UK Steering Group

Exploration

Technology Decommissioning Supply Chain and Exports

Supply Chain and Exports Task Force


Technology Leadership Board

Exploration Task Force



Asset Stewardship Efficiency

Industry Cultural Change Champion

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939

MER UK in actionApache near field exploration

Exp

lora

tion

bull Invested in high quality 3D seismic to uncover near-field prospectivity

bull Callater achieved first oil only 23 months after discovery

bull Garten discovery marks 2500th UKCS exploration well - Fast track development c5 months from discovery to FDP approval

Buzzard Phase II

Dev

elop

men

t

bull Novel alliance contracting strategy delivering highly effective collaboration across the supply chain

bull Potential to extend the life of the field by 10 years

bull First oil expected Q1 2021

Spirit Energy Oil and gas Technology Centre

Tech

nolo

gy

bull Thermite PampA

bull Transformational technology which could significantly reduce well decommissioning

bull Piloted by Spirit Energy in the UK

CNR International (UK) Ltd

Wel

ls bull Contributed to the Ninian field producing the highest production rates since 2009

bull Excellent collaboration with the Supply Chain

bull Delivered significant results

bull MER UK Award Winner

Repsol SinopecDigital asset Integration

Supp

ly C

hain

bull 4G technology connecting platform to onshore supportbull pound60m savings on one platform alonebull High performance from data analytics

CNR Ninian cost reduction

Dec

omm

issi

onin

g

bull Average cost per well ltP10 compared with the current NNS OGA P50 benchmark of pound36 million

bull One team approach innovative technical approaches and continuous learning

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40

Director ofOperations

Gunther Newcombe

Director of Strategy

Hedvig Ljungerud

Director of HR and Supply Chain

Stuart Payne

Chief Financial Officer

Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel

Non-Executive Director

Robert Armour

Company Secretary and General Counsel

Dr Russell Richardson


Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy

Board of Directors and Company Secretary


Frances Morris-Jones

Director of Regulation

Tom Wheeler

Experienced leadershipD

evel

op p

eopl

e p

roce

sses

and

sys

tem

s

Shareholder Representative

Director

Emily Bourne

4141

Exploration and production including Oil and gas policy includingOnshore offshore carbon storage gas storage and gas unloading licensing

OGA

Environmental aspects of onshore regulations SERG

Field development plan consents OGA

Cessation of production approvals OGA

Offshore pipeline works authorisation OGA

Infrastructure OGA

Commercial matters and changes of control OGA

Flaring and venting consents OGA

Metering and allocation OGA

Production outages OGA

Offshore decom efficiency costs technology OGA

Offshore decom programme approval execution and monitoring BEIS ndash OPRED

Offshore environmental management and inspection BEIS ndash OPRED

Health and safety management HSE

Supply chain action plans OGA

Overall oil and gas policy BEIS

Legislation BEIS

Oil and gas parliamentary processes BEIS ndash OGA shareholder team

Offshore decommissioning BEIS ndash OPRED OGA HMT

Fiscal and taxation

HMT The OGA provide expertise and evidence to HM Treasury

Supply chain and business impact BEIS amp OGA

Environment BEIS ndash OPRED

International relations and tradeBEIS DIT OGA FCO

Key

BEIS Department for Business Energy and Industrial Strategy

DIT Department for International trade

FCO Foreign and Commonwealth Office

HMT Her Majestyrsquos Treasury

OGA The Oil and Gas Authority

OPRED Offshore Petroleum Regulator for Environment and Decommissioning

SERG Shale Environmental Regulator Group (Oil and Gas Authority Health and Safety Executive and Environment Agency)

Who does what in UK government

42

Key publicationsNew stewardship regime Worked with industry to develop 10 expectations and implementation guides spanning the whole lifecycle and the stewardship review process

Strategic overview Published with industry sector strategies setting direction

Asset Stewardship Expectations

Southern North Sea Tight Gas

June 2017

Strategy

Asset Stewardship ExpectationsThe Maximising Economic Recovery Strategy for the UKAs reproduced by the OGA

Department forBusiness Energyamp Industrial Strategy


Collaborative Behaviour Quantification Tool Assessment Guidance Note

April 2017





StewardshipExpectationsSE-02 Exploration and Appraisal Subsurface Work Programme Implementation Guide

June 2017

Guidance

March 2017

StewardshipReview


OGA Annual Reportand Accounts

2017-18 (for the year ended 31 march 2018)

HC 1371

43

All OGA publications can be found at httpswwwogauthoritycouknews-publicationspublications

Sector wide data The OGA provide reports including reports using data from the annual stewardship survey to help industry improve and benchmark performance

Guidance Worked with industry to provide guidance on our powers and how they are being used

Lessons Learned from UKCS Oil and Gas Projects 2011-2016



June 2017

UK Continental ShelfUnsanctioned Discoveries Information PackUKCS Production Efficiency in 2016

June 2017






Financial Penalty Guidance

Date of publication 20 March 2017

SanctionProcedure

The OGArsquos statement of the procedure it proposes to follow in relation to enforcement decisions

Energy Act 2016 part 2 Chapter 5

SanctionProcedure



Competition amp Collaboration

November 2016

Supply Chain Action Plan Guidance


Guidance on Information and Samples Plans


Guidance on Disputes over Third Party Access to Upstream Oil and Gas Infrastructure


June 2017

Recovery FactorBenchmarkingUKCS Production Efficiency in 2016

June 2017

UK Continental Shelf (UKCS) Oilfields

September 2017

Asset Stewardship ExpectationsUK Oil and Gas Reserves and ResourcesAs at end 2016


Guidance on the management of offshore licence work programme commitments(in relation to paragraphs 11 and 12 of the MER UK Strategy)

January 2018 Rev 10

December 2017

Date of publication 2nd October 2017

Asset Stewardship ExpectationsSNS Salting Study

As at end 2016

Impact of Salt Deposition on Production Losses

Retention of Information and Samples Guidance

Date of Publication May 2018

Requirements for the planning of and consent to UKCS Field Developments






SanctionProcedure

DisputeResolution Guidance

Guidance on the development and use of Area Plans

Financial PenaltyGuidance


Guidance on requirements for the planning for Cessation of Production

July 2018


FinancialGuidance

Date of publication August 2018


Guidance on satisfactory expected commercial return (SECR)


Asset Stewardship ExpectationsGuidance for applications for suspension ofinactive wells

Date of Publication October 2018


Gas-to-wire UK SNS amp EIS


June 2017

Wells Insight Report 2018


June 2017

UKCS Operating Costs in 2017

October 2018

Copyright copy Oil and Gas Authority 2019

wwwogauthoritycouk

Contact us atogacorrespondenceogauthoritycouk

twittercomogauthoritywwwlinkedincomcompanyoil-and-gas-authority

OGA London Office 4th Floor 21 Bloomsbury Street London WC1B 3HF

OGA HeadquartersAB1 Building 48 Huntly Street Aberdeen AB10 1SH

Oil and Gas Authority is a limited company registered in England and Wales with registered number 09666504 and VAT registered number 249433979 Our registered office is at 21 Bloomsbury Street London United Kingdom WC1B 3HF

Contents

Front cover Courtesy of BP Exploration

Introduction from the Chief Executive 3Current context 4-5Vision 2035 6The big opportunity 7Energy transition and Vision 2035 8OGA background 9Regulatory framework 10Exercise of the OGArsquos powers 11Delivering value 12Changing face of ownership 13Fiscal measures 14UK performs favourably 15UKCS commercial landscape 16Substantial potential 17Resource base 18Project activity 19UK oil and gas production projectionscenarios 20Measuring success 21

Create the right conditions 27


Drive regional development 28-29

Area plansMarginal discoveries

Leverage technology and data 30-33

Leverage technologyTechnology Digital transformationOGA data centre

Improve decommissioning efficiency 34-35

Reducing decommissioning costsDecommissioning

Develop people processes and systems 36-40

Onshore licensing and consents The way forwardOil amp Gas MER UK Forum Steering Group and Task ForcesMER UK in actionExperienced leadership

Who does what in UK government 41 Key publications 42-43

Revitalise exploration 22-23

Revitalise exploration Exploration

Improve asset stewardship 24-26

Asset stewardship ndash driving improvement Further example operator benchmarksWells

3











4

Current context


Infrastructure


10bn

Development


NNS

WOS

CNS

SNSIS


pipelines20000 kms+


subsea systems250+


20bn+






245839

1



2014 2018

5


142 157 163 163


2014 2015 2016 2017


Supply chain

pound27bnturnover




40 80

2018

17million


Jobs


6

pound420bn

pound280bn

pound350bn

pound500bn

Rev

enue

Tur

nove

r (poundb

illio

n 2

016

pric

es)





2014 20350

5

10

15

20

25

30

35





Vision 2035


7



Consolidation

Transparency

Extend life

Halve well costs

Exports

Technology

Job and skills

Collaboration

8








Power-to-GasH2















Emissions

CCUS


Technology

Gas

Gas to Wire


9








Transparency

OGA role




Regulate

Promote

MERUK


Influence

10



Execution

Cost reduction

Guidance

SanctionNotices


Enforcementnotice






RegulatoryPowers


MER UK plans

Regulatory powers




access

Collaboration



Sanctions


11





1Stewardship

2Facilitation

Esca

latin

g le

vel o

f OG

A in

terv

entio

n



OGApowers4

Formalintervention


5





MER UK benefits all

Asset Stewardship


Use

of P

ower

sOGA interventions

Successes to date60

Facilitation9



OGA Powers5

Issues

Cases

Area Plans

12

Delivering value






Decommissioning


UKCS exploration







Energy transition






41 thousandboed

Small cap

Mid cap



Other

Utilities

23


41 thousandboed

Small cap

Mid cap



Other

Utilities



on throughput

2014

2018

2018Production

2014Production

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other

Utilities

Key

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other


Small cap

Mid cap



Other

Utilities


14


from 32 to 10










costs







1

2

3

15












16





Vendor finance

Private equity





























18

Resource base(n

umbe

rs in

billi

on b

oe a

s at

end

201

7)

2017

changes

018

06






75unsanctioned


54 sanctioned



Rang

e of

tota

l pot

entia

l res

ourc

es

ca 1

0 to

20b

n bo

e

01



112 in plays





NNS

WOS

CNS

SNSIS

Lancaster EPS

Alligin

Galleon

Tolmount

Fram

Buzzard Phase 2

Culzean

Arran

Finlaggan

Columbus

Vorlich

Joanne

Captain

Shearwater Re-Plumb

Orlando

Penguins

West Brae

Ballindalloch

Dunlin Bypass

Mariner

Utgard

Buckand

20


00

05

10

15

20

2015

2020

2025

2030

2035

2040

2045

2050


Vision Scenario





Estim

ated

add

ition

al c

ontr

ibut

ion

(bn

boe)

0

02

04

06

08

10

2015-18Extra


COP

InfieldReserves

Aid EORProject

SanctionsOther

factors

RecentEampA

ActivityFuture

Exploration

094

090

028

061

025030030032


39bnboe

Additional

21

Measuring success




DAYS









852


10661918

Production volume

Technologies





Influence

Promote

Regulate


Actual poundM 308


22

Key


4

444

4444

44 44

4

4

44444

44

444444

444444

44 4

44

4444

4444444444444 44

44




4

4

4

4

4

4

4

4

Greater Buchan Area


2019 2020 2021

31st

supplementary Q1

32nd

33rd


Mature Areas

Frontier Areas

Round opens

Round closes

Licence awards


Rev

italis

e ex

plor

atio

n








23

Rev

italis

e ex

plor

atio

n

11

14 11

090904

23

20

17 13

11

04 05

03Reserves




NNS

35




4716

14

08 WoS

17

25

Rockall Trough










No Exploration

Wells



$boe


2014 13 69 9 83

2015 15 53 5 115

2016 11 45 5 64

2017 15 47 35 131

2018 7 43 1 175

24

Impr

ove

asse

t ste

war

dshi




LEADS

PLAY

PROSPECT

POTENTIALIN

FIELD

SANC

TIO

NED

DEVE

LOPM

ENTS

DEVELOPMENT

UNDER

PRODUCING

OPTIMISATION

DEVELOPMENTS

DISCOVERIES

(Mean unrisked)

CONTINGENT

RESOURCES

PROSPECTIVE

RESO

URCES

(2C)

RESERVES (2P)

PRODUCTION

All UKCS Operators





reductionResource

Progression

Senior Leadership

Tier ZeroTier One

Tier Two





Net

uni

t ope

ratin

g co

st (pound

boe

)

Operators


35

30

25

20

15

10

5

0






25




Field quality index

Rec

over

y fa

ctor

Operator X

Operator X

2017

Res

erve

s R

epla

cem

ent

Operator X

Operator X


Operator X

Expl

orat

ion

KPI s

core

Operator Xpoundboe

0 5 10 15 20 25 30

Operator X

Acquisition

Processing0102030405060708090100

0102030405060708090100

Operator X

Operator X

Operator X

Impr

ove

asse

t ste

war

dshi

p

Operator X

2626 26

Wells


Leve

rage

tech

nolo

gy a

nd d

ata


The Story so far



Delivering

44 billion barrels



19 EampA Wells

56 Development

wells

2128 Wells in

operation







but

Well abandonment








44






SCAPs




OGA Supporting





Project Pathfinder

Online project data



2015pound35bn

2016pound30bn

2017pound27bn

85

60

80




Cre

ate

the

right

con

ditio

ns

28

Area plans


Driv

e re

gion

al d

evel

opm

ent


East of Shetland

Quad 9 Gas

Outer Moray Firth



East Irish Sea

Tight Gas



Penguins











29




WOS

NNS

MFB

CNS

SNS

EIS






EIS East Irish Sea


1

2

3

Tech

nica

lly R

ecov

erab

le (b

nboe

)

Licensed

Unlicensed

30thRound

01

1

10

100

Licensed Unlicensed


Tech

nica

lly

reco

vera

ble

(mm

boe)

Technology











Clustering



Source OGA data

Driv

e re

gion

al d

evel

opm

ent

30 30



Leverage technology

OGA role






Priorities







Supply Chain

Research Academia





June 2017

33

22

107

16

21

8

5

18

No Submission

No plan

Limited plan

Good summary

plan

Comprehensive plan

No plan

Limited plan

Good summary

plan

Comprehensive plan










Leve

rage

tech

nolo

gy a

nd d

ata

31


Inspection drones

Thermite PampA


Low Capex Low Opex



Unmanned buoys




Plug-n-play

Re-usable

Composite spoolable













Leve

rage

tech

nolo

gy a

nd d

ata

3232




Leve

rage

tech

nolo

gy a

nd d

ata



2998 pipelines






Seismic

2D

Other

3D

3D642

104

4252

4998surveys

Other

2D

Infrastructure








8000 offshore wells


Wells


3333

OGA Data Centre







57k+users




Leve

rage

tech

nolo

gy a

nd d

ata

34

2017Established

Cost baseline






gt35 cost reduction

target


report


pound597bnpound58bn

pound557bn







case studies



Report

Project management

Warm Phase2 | Cold



Operating1 |


Well Abandonment



Topsidesremoval




preparation

PlanningScope

Execution












Planning Scope

Impr

ove

deco

mm

issi

onin

g effi

cien

cy

35

Impr

ove

deco

mm

issi

onin

g effi

cien

cy










Well abandonment


Structural removals



36


Onshore Licences












Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




5Improve





End 2021



38








Exploration










Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

gy

bull Thermite PampA




Wel






Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


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June 2017



June 2017


October 2018


wwwogauthoritycouk






3











4

Current context


Infrastructure


10bn

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WOS

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pipelines20000 kms+


subsea systems250+


20bn+






245839

1



2014 2018

5


142 157 163 163


2014 2015 2016 2017


Supply chain

pound27bnturnover




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pound350bn

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enue

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2014 20350

5

10

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20

25

30

35





Vision 2035


7



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Transparency

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8








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9








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Regulate

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10



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SanctionNotices


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11





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ower

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41 thousandboed

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23


41 thousandboed

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on throughput

2014

2018

2018Production

2014Production

41 thousandboed

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41 thousandboed

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41 thousandboed

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41 thousandboed

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41 thousandboed

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41 thousandboed

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14


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costs







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16





Vendor finance

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18

Resource base(n

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Estim

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Rev

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23

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4716

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No Exploration

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$boe


2014 13 69 9 83

2015 15 53 5 115

2016 11 45 5 64

2017 15 47 35 131

2018 7 43 1 175

24

Impr

ove

asse

t ste

war

dshi




LEADS

PLAY

PROSPECT

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reductionResource

Progression

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Net

uni

t ope

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st (pound

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0






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ctor

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wells

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operation







but

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44






SCAPs




OGA Supporting





Project Pathfinder

Online project data



2015pound35bn

2016pound30bn

2017pound27bn

85

60

80




Cre

ate

the

right

con

ditio

ns

28

Area plans


Driv

e re

gion

al d

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29




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EIS East Irish Sea


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June 2017

33

22

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16

21

8

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18

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plan

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rage

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104

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4998surveys

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Infrastructure








8000 offshore wells


Wells


3333

OGA Data Centre







57k+users




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rage

tech

nolo

gy a

nd d

ata

34

2017Established

Cost baseline






gt35 cost reduction

target


report


pound597bnpound58bn

pound557bn







case studies



Report

Project management

Warm Phase2 | Cold



Operating1 |


Well Abandonment



Topsidesremoval




preparation

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Execution












Planning Scope

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ove

deco

mm

issi

onin

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cien

cy

35

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ove

deco

mm

issi

onin

g effi

cien

cy










Well abandonment


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36


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Dev

elop

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ple

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cess

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nd s

yste

ms

37

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elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




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End 2021



38








Exploration










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peo

ple

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cess

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nd s

yste

ms

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tion




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elop

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nolo

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ly C

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omm

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ple

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cess

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nd s

yste

ms

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Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






4

Current context


Infrastructure


10bn

Development


NNS

WOS

CNS

SNSIS


pipelines20000 kms+


subsea systems250+


20bn+






245839

1



2014 2018

5


142 157 163 163


2014 2015 2016 2017


Supply chain

pound27bnturnover




40 80

2018

17million


Jobs


6

pound420bn

pound280bn

pound350bn

pound500bn

Rev

enue

Tur

nove

r (poundb

illio

n 2

016

pric

es)





2014 20350

5

10

15

20

25

30

35





Vision 2035


7



Consolidation

Transparency

Extend life

Halve well costs

Exports

Technology

Job and skills

Collaboration

8








Power-to-GasH2















Emissions

CCUS


Technology

Gas

Gas to Wire


9








Transparency

OGA role




Regulate

Promote

MERUK


Influence

10



Execution

Cost reduction

Guidance

SanctionNotices


Enforcementnotice






RegulatoryPowers


MER UK plans

Regulatory powers




access

Collaboration



Sanctions


11





1Stewardship

2Facilitation

Esca

latin

g le

vel o

f OG

A in

terv

entio

n



OGApowers4

Formalintervention


5





MER UK benefits all

Asset Stewardship


Use

of P

ower

sOGA interventions

Successes to date60

Facilitation9



OGA Powers5

Issues

Cases

Area Plans

12

Delivering value






Decommissioning


UKCS exploration







Energy transition






41 thousandboed

Small cap

Mid cap



Other

Utilities

23


41 thousandboed

Small cap

Mid cap



Other

Utilities



on throughput

2014

2018

2018Production

2014Production

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other

Utilities

Key

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other


Small cap

Mid cap



Other

Utilities


14


from 32 to 10










costs







1

2

3

15












16





Vendor finance

Private equity





























18

Resource base(n

umbe

rs in

billi

on b

oe a

s at

end

201

7)

2017

changes

018

06






75unsanctioned


54 sanctioned



Rang

e of

tota

l pot

entia

l res

ourc

es

ca 1

0 to

20b

n bo

e

01



112 in plays





NNS

WOS

CNS

SNSIS

Lancaster EPS

Alligin

Galleon

Tolmount

Fram

Buzzard Phase 2

Culzean

Arran

Finlaggan

Columbus

Vorlich

Joanne

Captain

Shearwater Re-Plumb

Orlando

Penguins

West Brae

Ballindalloch

Dunlin Bypass

Mariner

Utgard

Buckand

20


00

05

10

15

20

2015

2020

2025

2030

2035

2040

2045

2050


Vision Scenario





Estim

ated

add

ition

al c

ontr

ibut

ion

(bn

boe)

0

02

04

06

08

10

2015-18Extra


COP

InfieldReserves

Aid EORProject

SanctionsOther

factors

RecentEampA

ActivityFuture

Exploration

094

090

028

061

025030030032


39bnboe

Additional

21

Measuring success




DAYS









852


10661918

Production volume

Technologies





Influence

Promote

Regulate


Actual poundM 308


22

Key


4

444

4444

44 44

4

4

44444

44

444444

444444

44 4

44

4444

4444444444444 44

44




4

4

4

4

4

4

4

4

Greater Buchan Area


2019 2020 2021

31st

supplementary Q1

32nd

33rd


Mature Areas

Frontier Areas

Round opens

Round closes

Licence awards


Rev

italis

e ex

plor

atio

n








23

Rev

italis

e ex

plor

atio

n

11

14 11

090904

23

20

17 13

11

04 05

03Reserves




NNS

35




4716

14

08 WoS

17

25

Rockall Trough










No Exploration

Wells



$boe


2014 13 69 9 83

2015 15 53 5 115

2016 11 45 5 64

2017 15 47 35 131

2018 7 43 1 175

24

Impr

ove

asse

t ste

war

dshi




LEADS

PLAY

PROSPECT

POTENTIALIN

FIELD

SANC

TIO

NED

DEVE

LOPM

ENTS

DEVELOPMENT

UNDER

PRODUCING

OPTIMISATION

DEVELOPMENTS

DISCOVERIES

(Mean unrisked)

CONTINGENT

RESOURCES

PROSPECTIVE

RESO

URCES

(2C)

RESERVES (2P)

PRODUCTION

All UKCS Operators





reductionResource

Progression

Senior Leadership

Tier ZeroTier One

Tier Two





Net

uni

t ope

ratin

g co

st (pound

boe

)

Operators


35

30

25

20

15

10

5

0






25




Field quality index

Rec

over

y fa

ctor

Operator X

Operator X

2017

Res

erve

s R

epla

cem

ent

Operator X

Operator X


Operator X

Expl

orat

ion

KPI s

core

Operator Xpoundboe

0 5 10 15 20 25 30

Operator X

Acquisition

Processing0102030405060708090100

0102030405060708090100

Operator X

Operator X

Operator X

Impr

ove

asse

t ste

war

dshi

p

Operator X

2626 26

Wells


Leve

rage

tech

nolo

gy a

nd d

ata


The Story so far



Delivering

44 billion barrels



19 EampA Wells

56 Development

wells

2128 Wells in

operation







but

Well abandonment








44






SCAPs




OGA Supporting





Project Pathfinder

Online project data



2015pound35bn

2016pound30bn

2017pound27bn

85

60

80




Cre

ate

the

right

con

ditio

ns

28

Area plans


Driv

e re

gion

al d

evel

opm

ent


East of Shetland

Quad 9 Gas

Outer Moray Firth



East Irish Sea

Tight Gas



Penguins











29




WOS

NNS

MFB

CNS

SNS

EIS






EIS East Irish Sea


1

2

3

Tech

nica

lly R

ecov

erab

le (b

nboe

)

Licensed

Unlicensed

30thRound

01

1

10

100

Licensed Unlicensed


Tech

nica

lly

reco

vera

ble

(mm

boe)

Technology











Clustering



Source OGA data

Driv

e re

gion

al d

evel

opm

ent

30 30



Leverage technology

OGA role






Priorities







Supply Chain

Research Academia





June 2017

33

22

107

16

21

8

5

18

No Submission

No plan

Limited plan

Good summary

plan

Comprehensive plan

No plan

Limited plan

Good summary

plan

Comprehensive plan










Leve

rage

tech

nolo

gy a

nd d

ata

31


Inspection drones

Thermite PampA


Low Capex Low Opex



Unmanned buoys




Plug-n-play

Re-usable

Composite spoolable













Leve

rage

tech

nolo

gy a

nd d

ata

3232




Leve

rage

tech

nolo

gy a

nd d

ata



2998 pipelines






Seismic

2D

Other

3D

3D642

104

4252

4998surveys

Other

2D

Infrastructure








8000 offshore wells


Wells


3333

OGA Data Centre







57k+users




Leve

rage

tech

nolo

gy a

nd d

ata

34

2017Established

Cost baseline






gt35 cost reduction

target


report


pound597bnpound58bn

pound557bn







case studies



Report

Project management

Warm Phase2 | Cold



Operating1 |


Well Abandonment



Topsidesremoval




preparation

PlanningScope

Execution












Planning Scope

Impr

ove

deco

mm

issi

onin

g effi

cien

cy

35

Impr

ove

deco

mm

issi

onin

g effi

cien

cy










Well abandonment


Structural removals



36


Onshore Licences












Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




5Improve





End 2021



38








Exploration










Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

gy

bull Thermite PampA




Wel






Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






5


142 157 163 163


2014 2015 2016 2017


Supply chain

pound27bnturnover




40 80

2018

17million


Jobs


6

pound420bn

pound280bn

pound350bn

pound500bn

Rev

enue

Tur

nove

r (poundb

illio

n 2

016

pric

es)





2014 20350

5

10

15

20

25

30

35





Vision 2035


7



Consolidation

Transparency

Extend life

Halve well costs

Exports

Technology

Job and skills

Collaboration

8








Power-to-GasH2















Emissions

CCUS


Technology

Gas

Gas to Wire


9








Transparency

OGA role




Regulate

Promote

MERUK


Influence

10



Execution

Cost reduction

Guidance

SanctionNotices


Enforcementnotice






RegulatoryPowers


MER UK plans

Regulatory powers




access

Collaboration



Sanctions


11





1Stewardship

2Facilitation

Esca

latin

g le

vel o

f OG

A in

terv

entio

n



OGApowers4

Formalintervention


5





MER UK benefits all

Asset Stewardship


Use

of P

ower

sOGA interventions

Successes to date60

Facilitation9



OGA Powers5

Issues

Cases

Area Plans

12

Delivering value






Decommissioning


UKCS exploration







Energy transition






41 thousandboed

Small cap

Mid cap



Other

Utilities

23


41 thousandboed

Small cap

Mid cap



Other

Utilities



on throughput

2014

2018

2018Production

2014Production

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other

Utilities

Key

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other


Small cap

Mid cap



Other

Utilities


14


from 32 to 10










costs







1

2

3

15












16





Vendor finance

Private equity





























18

Resource base(n

umbe

rs in

billi

on b

oe a

s at

end

201

7)

2017

changes

018

06






75unsanctioned


54 sanctioned



Rang

e of

tota

l pot

entia

l res

ourc

es

ca 1

0 to

20b

n bo

e

01



112 in plays





NNS

WOS

CNS

SNSIS

Lancaster EPS

Alligin

Galleon

Tolmount

Fram

Buzzard Phase 2

Culzean

Arran

Finlaggan

Columbus

Vorlich

Joanne

Captain

Shearwater Re-Plumb

Orlando

Penguins

West Brae

Ballindalloch

Dunlin Bypass

Mariner

Utgard

Buckand

20


00

05

10

15

20

2015

2020

2025

2030

2035

2040

2045

2050


Vision Scenario





Estim

ated

add

ition

al c

ontr

ibut

ion

(bn

boe)

0

02

04

06

08

10

2015-18Extra


COP

InfieldReserves

Aid EORProject

SanctionsOther

factors

RecentEampA

ActivityFuture

Exploration

094

090

028

061

025030030032


39bnboe

Additional

21

Measuring success




DAYS









852


10661918

Production volume

Technologies





Influence

Promote

Regulate


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Greater Buchan Area


2019 2020 2021

31st

supplementary Q1

32nd

33rd


Mature Areas

Frontier Areas

Round opens

Round closes

Licence awards


Rev

italis

e ex

plor

atio

n








23

Rev

italis

e ex

plor

atio

n

11

14 11

090904

23

20

17 13

11

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03Reserves




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35




4716

14

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25

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Wells



$boe


2014 13 69 9 83

2015 15 53 5 115

2016 11 45 5 64

2017 15 47 35 131

2018 7 43 1 175

24

Impr

ove

asse

t ste

war

dshi




LEADS

PLAY

PROSPECT

POTENTIALIN

FIELD

SANC

TIO

NED

DEVE

LOPM

ENTS

DEVELOPMENT

UNDER

PRODUCING

OPTIMISATION

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DISCOVERIES

(Mean unrisked)

CONTINGENT

RESOURCES

PROSPECTIVE

RESO

URCES

(2C)

RESERVES (2P)

PRODUCTION

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reductionResource

Progression

Senior Leadership

Tier ZeroTier One

Tier Two





Net

uni

t ope

ratin

g co

st (pound

boe

)

Operators


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30

25

20

15

10

5

0






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Rec

over

y fa

ctor

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Operator X

2017

Res

erve

s R

epla

cem

ent

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Operator X


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Expl

orat

ion

KPI s

core

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0 5 10 15 20 25 30

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Operator X

Impr

ove

asse

t ste

war

dshi

p

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2626 26

Wells


Leve

rage

tech

nolo

gy a

nd d

ata


The Story so far



Delivering

44 billion barrels



19 EampA Wells

56 Development

wells

2128 Wells in

operation







but

Well abandonment








44






SCAPs




OGA Supporting





Project Pathfinder

Online project data



2015pound35bn

2016pound30bn

2017pound27bn

85

60

80




Cre

ate

the

right

con

ditio

ns

28

Area plans


Driv

e re

gion

al d

evel

opm

ent


East of Shetland

Quad 9 Gas

Outer Moray Firth



East Irish Sea

Tight Gas



Penguins











29




WOS

NNS

MFB

CNS

SNS

EIS






EIS East Irish Sea


1

2

3

Tech

nica

lly R

ecov

erab

le (b

nboe

)

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Unlicensed

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01

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10

100

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nica

lly

reco

vera

ble

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boe)

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Driv

e re

gion

al d

evel

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ent

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OGA role






Priorities







Supply Chain

Research Academia





June 2017

33

22

107

16

21

8

5

18

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Limited plan

Good summary

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Comprehensive plan

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Good summary

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Comprehensive plan










Leve

rage

tech

nolo

gy a

nd d

ata

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Inspection drones

Thermite PampA


Low Capex Low Opex



Unmanned buoys




Plug-n-play

Re-usable

Composite spoolable













Leve

rage

tech

nolo

gy a

nd d

ata

3232




Leve

rage

tech

nolo

gy a

nd d

ata



2998 pipelines






Seismic

2D

Other

3D

3D642

104

4252

4998surveys

Other

2D

Infrastructure








8000 offshore wells


Wells


3333

OGA Data Centre







57k+users




Leve

rage

tech

nolo

gy a

nd d

ata

34

2017Established

Cost baseline






gt35 cost reduction

target


report


pound597bnpound58bn

pound557bn







case studies



Report

Project management

Warm Phase2 | Cold



Operating1 |


Well Abandonment



Topsidesremoval




preparation

PlanningScope

Execution












Planning Scope

Impr

ove

deco

mm

issi

onin

g effi

cien

cy

35

Impr

ove

deco

mm

issi

onin

g effi

cien

cy










Well abandonment


Structural removals



36


Onshore Licences












Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




5Improve





End 2021



38








Exploration










Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

gy

bull Thermite PampA




Wel






Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






7



Consolidation

Transparency

Extend life

Halve well costs

Exports

Technology

Job and skills

Collaboration

8








Power-to-GasH2















Emissions

CCUS


Technology

Gas

Gas to Wire


9








Transparency

OGA role




Regulate

Promote

MERUK


Influence

10



Execution

Cost reduction

Guidance

SanctionNotices


Enforcementnotice






RegulatoryPowers


MER UK plans

Regulatory powers




access

Collaboration



Sanctions


11





1Stewardship

2Facilitation

Esca

latin

g le

vel o

f OG

A in

terv

entio

n



OGApowers4

Formalintervention


5





MER UK benefits all

Asset Stewardship


Use

of P

ower

sOGA interventions

Successes to date60

Facilitation9



OGA Powers5

Issues

Cases

Area Plans

12

Delivering value






Decommissioning


UKCS exploration







Energy transition






41 thousandboed

Small cap

Mid cap



Other

Utilities

23


41 thousandboed

Small cap

Mid cap



Other

Utilities



on throughput

2014

2018

2018Production

2014Production

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other

Utilities

Key

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other


Small cap

Mid cap



Other

Utilities


14


from 32 to 10










costs







1

2

3

15












16





Vendor finance

Private equity





























18

Resource base(n

umbe

rs in

billi

on b

oe a

s at

end

201

7)

2017

changes

018

06






75unsanctioned


54 sanctioned



Rang

e of

tota

l pot

entia

l res

ourc

es

ca 1

0 to

20b

n bo

e

01



112 in plays





NNS

WOS

CNS

SNSIS

Lancaster EPS

Alligin

Galleon

Tolmount

Fram

Buzzard Phase 2

Culzean

Arran

Finlaggan

Columbus

Vorlich

Joanne

Captain

Shearwater Re-Plumb

Orlando

Penguins

West Brae

Ballindalloch

Dunlin Bypass

Mariner

Utgard

Buckand

20


00

05

10

15

20

2015

2020

2025

2030

2035

2040

2045

2050


Vision Scenario





Estim

ated

add

ition

al c

ontr

ibut

ion

(bn

boe)

0

02

04

06

08

10

2015-18Extra


COP

InfieldReserves

Aid EORProject

SanctionsOther

factors

RecentEampA

ActivityFuture

Exploration

094

090

028

061

025030030032


39bnboe

Additional

21

Measuring success




DAYS









852


10661918

Production volume

Technologies





Influence

Promote

Regulate


Actual poundM 308


22

Key


4

444

4444

44 44

4

4

44444

44

444444

444444

44 4

44

4444

4444444444444 44

44




4

4

4

4

4

4

4

4

Greater Buchan Area


2019 2020 2021

31st

supplementary Q1

32nd

33rd


Mature Areas

Frontier Areas

Round opens

Round closes

Licence awards


Rev

italis

e ex

plor

atio

n








23

Rev

italis

e ex

plor

atio

n

11

14 11

090904

23

20

17 13

11

04 05

03Reserves




NNS

35




4716

14

08 WoS

17

25

Rockall Trough










No Exploration

Wells



$boe


2014 13 69 9 83

2015 15 53 5 115

2016 11 45 5 64

2017 15 47 35 131

2018 7 43 1 175

24

Impr

ove

asse

t ste

war

dshi




LEADS

PLAY

PROSPECT

POTENTIALIN

FIELD

SANC

TIO

NED

DEVE

LOPM

ENTS

DEVELOPMENT

UNDER

PRODUCING

OPTIMISATION

DEVELOPMENTS

DISCOVERIES

(Mean unrisked)

CONTINGENT

RESOURCES

PROSPECTIVE

RESO

URCES

(2C)

RESERVES (2P)

PRODUCTION

All UKCS Operators





reductionResource

Progression

Senior Leadership

Tier ZeroTier One

Tier Two





Net

uni

t ope

ratin

g co

st (pound

boe

)

Operators


35

30

25

20

15

10

5

0






25




Field quality index

Rec

over

y fa

ctor

Operator X

Operator X

2017

Res

erve

s R

epla

cem

ent

Operator X

Operator X


Operator X

Expl

orat

ion

KPI s

core

Operator Xpoundboe

0 5 10 15 20 25 30

Operator X

Acquisition

Processing0102030405060708090100

0102030405060708090100

Operator X

Operator X

Operator X

Impr

ove

asse

t ste

war

dshi

p

Operator X

2626 26

Wells


Leve

rage

tech

nolo

gy a

nd d

ata


The Story so far



Delivering

44 billion barrels



19 EampA Wells

56 Development

wells

2128 Wells in

operation







but

Well abandonment








44






SCAPs




OGA Supporting





Project Pathfinder

Online project data



2015pound35bn

2016pound30bn

2017pound27bn

85

60

80




Cre

ate

the

right

con

ditio

ns

28

Area plans


Driv

e re

gion

al d

evel

opm

ent


East of Shetland

Quad 9 Gas

Outer Moray Firth



East Irish Sea

Tight Gas



Penguins











29




WOS

NNS

MFB

CNS

SNS

EIS






EIS East Irish Sea


1

2

3

Tech

nica

lly R

ecov

erab

le (b

nboe

)

Licensed

Unlicensed

30thRound

01

1

10

100

Licensed Unlicensed


Tech

nica

lly

reco

vera

ble

(mm

boe)

Technology











Clustering



Source OGA data

Driv

e re

gion

al d

evel

opm

ent

30 30



Leverage technology

OGA role






Priorities







Supply Chain

Research Academia





June 2017

33

22

107

16

21

8

5

18

No Submission

No plan

Limited plan

Good summary

plan

Comprehensive plan

No plan

Limited plan

Good summary

plan

Comprehensive plan










Leve

rage

tech

nolo

gy a

nd d

ata

31


Inspection drones

Thermite PampA


Low Capex Low Opex



Unmanned buoys




Plug-n-play

Re-usable

Composite spoolable













Leve

rage

tech

nolo

gy a

nd d

ata

3232




Leve

rage

tech

nolo

gy a

nd d

ata



2998 pipelines






Seismic

2D

Other

3D

3D642

104

4252

4998surveys

Other

2D

Infrastructure








8000 offshore wells


Wells


3333

OGA Data Centre







57k+users




Leve

rage

tech

nolo

gy a

nd d

ata

34

2017Established

Cost baseline






gt35 cost reduction

target


report


pound597bnpound58bn

pound557bn







case studies



Report

Project management

Warm Phase2 | Cold



Operating1 |


Well Abandonment



Topsidesremoval




preparation

PlanningScope

Execution












Planning Scope

Impr

ove

deco

mm

issi

onin

g effi

cien

cy

35

Impr

ove

deco

mm

issi

onin

g effi

cien

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Well abandonment


Structural removals



36


Onshore Licences












Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




5Improve





End 2021



38








Exploration










Dev

elop

peo

ple

pro

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yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

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Tech

nolo

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Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






8








Power-to-GasH2















Emissions

CCUS


Technology

Gas

Gas to Wire


9








Transparency

OGA role




Regulate

Promote

MERUK


Influence

10



Execution

Cost reduction

Guidance

SanctionNotices


Enforcementnotice






RegulatoryPowers


MER UK plans

Regulatory powers




access

Collaboration



Sanctions


11





1Stewardship

2Facilitation

Esca

latin

g le

vel o

f OG

A in

terv

entio

n



OGApowers4

Formalintervention


5





MER UK benefits all

Asset Stewardship


Use

of P

ower

sOGA interventions

Successes to date60

Facilitation9



OGA Powers5

Issues

Cases

Area Plans

12

Delivering value






Decommissioning


UKCS exploration







Energy transition






41 thousandboed

Small cap

Mid cap



Other

Utilities

23


41 thousandboed

Small cap

Mid cap



Other

Utilities



on throughput

2014

2018

2018Production

2014Production

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other

Utilities

Key

41 thousandboed

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41 thousandboed

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Utilities

41 thousandboed

Small cap

Mid cap



Other


Small cap

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Other

Utilities


14


from 32 to 10










costs







1

2

3

15












16





Vendor finance

Private equity





























18

Resource base(n

umbe

rs in

billi

on b

oe a

s at

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201

7)

2017

changes

018

06






75unsanctioned


54 sanctioned



Rang

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l pot

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es

ca 1

0 to

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Captain

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Ballindalloch

Dunlin Bypass

Mariner

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20


00

05

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15

20

2015

2020

2025

2030

2035

2040

2045

2050


Vision Scenario





Estim

ated

add

ition

al c

ontr

ibut

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(bn

boe)

0

02

04

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10

2015-18Extra


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factors

RecentEampA

ActivityFuture

Exploration

094

090

028

061

025030030032


39bnboe

Additional

21

Measuring success




DAYS









852


10661918

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Promote

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Actual poundM 308


22

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4

444

4444

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4

4

44444

44

444444

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44

4444

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44




4

4

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4

4

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4

4

Greater Buchan Area


2019 2020 2021

31st

supplementary Q1

32nd

33rd


Mature Areas

Frontier Areas

Round opens

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Licence awards


Rev

italis

e ex

plor

atio

n








23

Rev

italis

e ex

plor

atio

n

11

14 11

090904

23

20

17 13

11

04 05

03Reserves




NNS

35




4716

14

08 WoS

17

25

Rockall Trough










No Exploration

Wells



$boe


2014 13 69 9 83

2015 15 53 5 115

2016 11 45 5 64

2017 15 47 35 131

2018 7 43 1 175

24

Impr

ove

asse

t ste

war

dshi




LEADS

PLAY

PROSPECT

POTENTIALIN

FIELD

SANC

TIO

NED

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ENTS

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RESO

URCES

(2C)

RESERVES (2P)

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All UKCS Operators





reductionResource

Progression

Senior Leadership

Tier ZeroTier One

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Net

uni

t ope

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g co

st (pound

boe

)

Operators


35

30

25

20

15

10

5

0






25




Field quality index

Rec

over

y fa

ctor

Operator X

Operator X

2017

Res

erve

s R

epla

cem

ent

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Operator X


Operator X

Expl

orat

ion

KPI s

core

Operator Xpoundboe

0 5 10 15 20 25 30

Operator X

Acquisition

Processing0102030405060708090100

0102030405060708090100

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Operator X

Operator X

Impr

ove

asse

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war

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2626 26

Wells


Leve

rage

tech

nolo

gy a

nd d

ata


The Story so far



Delivering

44 billion barrels



19 EampA Wells

56 Development

wells

2128 Wells in

operation







but

Well abandonment








44






SCAPs




OGA Supporting





Project Pathfinder

Online project data



2015pound35bn

2016pound30bn

2017pound27bn

85

60

80




Cre

ate

the

right

con

ditio

ns

28

Area plans


Driv

e re

gion

al d

evel

opm

ent


East of Shetland

Quad 9 Gas

Outer Moray Firth



East Irish Sea

Tight Gas



Penguins











29




WOS

NNS

MFB

CNS

SNS

EIS






EIS East Irish Sea


1

2

3

Tech

nica

lly R

ecov

erab

le (b

nboe

)

Licensed

Unlicensed

30thRound

01

1

10

100

Licensed Unlicensed


Tech

nica

lly

reco

vera

ble

(mm

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Technology











Clustering



Source OGA data

Driv

e re

gion

al d

evel

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ent

30 30



Leverage technology

OGA role






Priorities







Supply Chain

Research Academia





June 2017

33

22

107

16

21

8

5

18

No Submission

No plan

Limited plan

Good summary

plan

Comprehensive plan

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Limited plan

Good summary

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Leve

rage

tech

nolo

gy a

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ata

31


Inspection drones

Thermite PampA


Low Capex Low Opex



Unmanned buoys




Plug-n-play

Re-usable

Composite spoolable













Leve

rage

tech

nolo

gy a

nd d

ata

3232




Leve

rage

tech

nolo

gy a

nd d

ata



2998 pipelines






Seismic

2D

Other

3D

3D642

104

4252

4998surveys

Other

2D

Infrastructure








8000 offshore wells


Wells


3333

OGA Data Centre







57k+users




Leve

rage

tech

nolo

gy a

nd d

ata

34

2017Established

Cost baseline






gt35 cost reduction

target


report


pound597bnpound58bn

pound557bn







case studies



Report

Project management

Warm Phase2 | Cold



Operating1 |


Well Abandonment



Topsidesremoval




preparation

PlanningScope

Execution












Planning Scope

Impr

ove

deco

mm

issi

onin

g effi

cien

cy

35

Impr

ove

deco

mm

issi

onin

g effi

cien

cy










Well abandonment


Structural removals



36


Onshore Licences












Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




5Improve





End 2021



38








Exploration










Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

gy

bull Thermite PampA




Wel






Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






9








Transparency

OGA role




Regulate

Promote

MERUK


Influence

10



Execution

Cost reduction

Guidance

SanctionNotices


Enforcementnotice






RegulatoryPowers


MER UK plans

Regulatory powers




access

Collaboration



Sanctions


11





1Stewardship

2Facilitation

Esca

latin

g le

vel o

f OG

A in

terv

entio

n



OGApowers4

Formalintervention


5





MER UK benefits all

Asset Stewardship


Use

of P

ower

sOGA interventions

Successes to date60

Facilitation9



OGA Powers5

Issues

Cases

Area Plans

12

Delivering value






Decommissioning


UKCS exploration







Energy transition






41 thousandboed

Small cap

Mid cap



Other

Utilities

23


41 thousandboed

Small cap

Mid cap



Other

Utilities



on throughput

2014

2018

2018Production

2014Production

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other

Utilities

Key

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other


Small cap

Mid cap



Other

Utilities


14


from 32 to 10










costs







1

2

3

15












16





Vendor finance

Private equity





























18

Resource base(n

umbe

rs in

billi

on b

oe a

s at

end

201

7)

2017

changes

018

06






75unsanctioned


54 sanctioned



Rang

e of

tota

l pot

entia

l res

ourc

es

ca 1

0 to

20b

n bo

e

01



112 in plays





NNS

WOS

CNS

SNSIS

Lancaster EPS

Alligin

Galleon

Tolmount

Fram

Buzzard Phase 2

Culzean

Arran

Finlaggan

Columbus

Vorlich

Joanne

Captain

Shearwater Re-Plumb

Orlando

Penguins

West Brae

Ballindalloch

Dunlin Bypass

Mariner

Utgard

Buckand

20


00

05

10

15

20

2015

2020

2025

2030

2035

2040

2045

2050


Vision Scenario





Estim

ated

add

ition

al c

ontr

ibut

ion

(bn

boe)

0

02

04

06

08

10

2015-18Extra


COP

InfieldReserves

Aid EORProject

SanctionsOther

factors

RecentEampA

ActivityFuture

Exploration

094

090

028

061

025030030032


39bnboe

Additional

21

Measuring success




DAYS









852


10661918

Production volume

Technologies





Influence

Promote

Regulate


Actual poundM 308


22

Key


4

444

4444

44 44

4

4

44444

44

444444

444444

44 4

44

4444

4444444444444 44

44




4

4

4

4

4

4

4

4

Greater Buchan Area


2019 2020 2021

31st

supplementary Q1

32nd

33rd


Mature Areas

Frontier Areas

Round opens

Round closes

Licence awards


Rev

italis

e ex

plor

atio

n








23

Rev

italis

e ex

plor

atio

n

11

14 11

090904

23

20

17 13

11

04 05

03Reserves




NNS

35




4716

14

08 WoS

17

25

Rockall Trough










No Exploration

Wells



$boe


2014 13 69 9 83

2015 15 53 5 115

2016 11 45 5 64

2017 15 47 35 131

2018 7 43 1 175

24

Impr

ove

asse

t ste

war

dshi




LEADS

PLAY

PROSPECT

POTENTIALIN

FIELD

SANC

TIO

NED

DEVE

LOPM

ENTS

DEVELOPMENT

UNDER

PRODUCING

OPTIMISATION

DEVELOPMENTS

DISCOVERIES

(Mean unrisked)

CONTINGENT

RESOURCES

PROSPECTIVE

RESO

URCES

(2C)

RESERVES (2P)

PRODUCTION

All UKCS Operators





reductionResource

Progression

Senior Leadership

Tier ZeroTier One

Tier Two





Net

uni

t ope

ratin

g co

st (pound

boe

)

Operators


35

30

25

20

15

10

5

0






25




Field quality index

Rec

over

y fa

ctor

Operator X

Operator X

2017

Res

erve

s R

epla

cem

ent

Operator X

Operator X


Operator X

Expl

orat

ion

KPI s

core

Operator Xpoundboe

0 5 10 15 20 25 30

Operator X

Acquisition

Processing0102030405060708090100

0102030405060708090100

Operator X

Operator X

Operator X

Impr

ove

asse

t ste

war

dshi

p

Operator X

2626 26

Wells


Leve

rage

tech

nolo

gy a

nd d

ata


The Story so far



Delivering

44 billion barrels



19 EampA Wells

56 Development

wells

2128 Wells in

operation







but

Well abandonment








44






SCAPs




OGA Supporting





Project Pathfinder

Online project data



2015pound35bn

2016pound30bn

2017pound27bn

85

60

80




Cre

ate

the

right

con

ditio

ns

28

Area plans


Driv

e re

gion

al d

evel

opm

ent


East of Shetland

Quad 9 Gas

Outer Moray Firth



East Irish Sea

Tight Gas



Penguins











29




WOS

NNS

MFB

CNS

SNS

EIS






EIS East Irish Sea


1

2

3

Tech

nica

lly R

ecov

erab

le (b

nboe

)

Licensed

Unlicensed

30thRound

01

1

10

100

Licensed Unlicensed


Tech

nica

lly

reco

vera

ble

(mm

boe)

Technology











Clustering



Source OGA data

Driv

e re

gion

al d

evel

opm

ent

30 30



Leverage technology

OGA role






Priorities







Supply Chain

Research Academia





June 2017

33

22

107

16

21

8

5

18

No Submission

No plan

Limited plan

Good summary

plan

Comprehensive plan

No plan

Limited plan

Good summary

plan

Comprehensive plan










Leve

rage

tech

nolo

gy a

nd d

ata

31


Inspection drones

Thermite PampA


Low Capex Low Opex



Unmanned buoys




Plug-n-play

Re-usable

Composite spoolable













Leve

rage

tech

nolo

gy a

nd d

ata

3232




Leve

rage

tech

nolo

gy a

nd d

ata



2998 pipelines






Seismic

2D

Other

3D

3D642

104

4252

4998surveys

Other

2D

Infrastructure








8000 offshore wells


Wells


3333

OGA Data Centre







57k+users




Leve

rage

tech

nolo

gy a

nd d

ata

34

2017Established

Cost baseline






gt35 cost reduction

target


report


pound597bnpound58bn

pound557bn







case studies



Report

Project management

Warm Phase2 | Cold



Operating1 |


Well Abandonment



Topsidesremoval




preparation

PlanningScope

Execution












Planning Scope

Impr

ove

deco

mm

issi

onin

g effi

cien

cy

35

Impr

ove

deco

mm

issi

onin

g effi

cien

cy










Well abandonment


Structural removals



36


Onshore Licences












Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




5Improve





End 2021



38








Exploration










Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

gy

bull Thermite PampA




Wel






Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






10



Execution

Cost reduction

Guidance

SanctionNotices


Enforcementnotice






RegulatoryPowers


MER UK plans

Regulatory powers




access

Collaboration



Sanctions


11





1Stewardship

2Facilitation

Esca

latin

g le

vel o

f OG

A in

terv

entio

n



OGApowers4

Formalintervention


5





MER UK benefits all

Asset Stewardship


Use

of P

ower

sOGA interventions

Successes to date60

Facilitation9



OGA Powers5

Issues

Cases

Area Plans

12

Delivering value






Decommissioning


UKCS exploration







Energy transition






41 thousandboed

Small cap

Mid cap



Other

Utilities

23


41 thousandboed

Small cap

Mid cap



Other

Utilities



on throughput

2014

2018

2018Production

2014Production

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other

Utilities

Key

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other


Small cap

Mid cap



Other

Utilities


14


from 32 to 10










costs







1

2

3

15












16





Vendor finance

Private equity





























18

Resource base(n

umbe

rs in

billi

on b

oe a

s at

end

201

7)

2017

changes

018

06






75unsanctioned


54 sanctioned



Rang

e of

tota

l pot

entia

l res

ourc

es

ca 1

0 to

20b

n bo

e

01



112 in plays





NNS

WOS

CNS

SNSIS

Lancaster EPS

Alligin

Galleon

Tolmount

Fram

Buzzard Phase 2

Culzean

Arran

Finlaggan

Columbus

Vorlich

Joanne

Captain

Shearwater Re-Plumb

Orlando

Penguins

West Brae

Ballindalloch

Dunlin Bypass

Mariner

Utgard

Buckand

20


00

05

10

15

20

2015

2020

2025

2030

2035

2040

2045

2050


Vision Scenario





Estim

ated

add

ition

al c

ontr

ibut

ion

(bn

boe)

0

02

04

06

08

10

2015-18Extra


COP

InfieldReserves

Aid EORProject

SanctionsOther

factors

RecentEampA

ActivityFuture

Exploration

094

090

028

061

025030030032


39bnboe

Additional

21

Measuring success




DAYS









852


10661918

Production volume

Technologies





Influence

Promote

Regulate


Actual poundM 308


22

Key


4

444

4444

44 44

4

4

44444

44

444444

444444

44 4

44

4444

4444444444444 44

44




4

4

4

4

4

4

4

4

Greater Buchan Area


2019 2020 2021

31st

supplementary Q1

32nd

33rd


Mature Areas

Frontier Areas

Round opens

Round closes

Licence awards


Rev

italis

e ex

plor

atio

n








23

Rev

italis

e ex

plor

atio

n

11

14 11

090904

23

20

17 13

11

04 05

03Reserves




NNS

35




4716

14

08 WoS

17

25

Rockall Trough










No Exploration

Wells



$boe


2014 13 69 9 83

2015 15 53 5 115

2016 11 45 5 64

2017 15 47 35 131

2018 7 43 1 175

24

Impr

ove

asse

t ste

war

dshi




LEADS

PLAY

PROSPECT

POTENTIALIN

FIELD

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NED

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ENTS

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RESO

URCES

(2C)

RESERVES (2P)

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All UKCS Operators





reductionResource

Progression

Senior Leadership

Tier ZeroTier One

Tier Two





Net

uni

t ope

ratin

g co

st (pound

boe

)

Operators


35

30

25

20

15

10

5

0






25




Field quality index

Rec

over

y fa

ctor

Operator X

Operator X

2017

Res

erve

s R

epla

cem

ent

Operator X

Operator X


Operator X

Expl

orat

ion

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core

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0 5 10 15 20 25 30

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Acquisition

Processing0102030405060708090100

0102030405060708090100

Operator X

Operator X

Operator X

Impr

ove

asse

t ste

war

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p

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2626 26

Wells


Leve

rage

tech

nolo

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ata


The Story so far



Delivering

44 billion barrels



19 EampA Wells

56 Development

wells

2128 Wells in

operation







but

Well abandonment








44






SCAPs




OGA Supporting





Project Pathfinder

Online project data



2015pound35bn

2016pound30bn

2017pound27bn

85

60

80




Cre

ate

the

right

con

ditio

ns

28

Area plans


Driv

e re

gion

al d

evel

opm

ent


East of Shetland

Quad 9 Gas

Outer Moray Firth



East Irish Sea

Tight Gas



Penguins











29




WOS

NNS

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EIS East Irish Sea


1

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3

Tech

nica

lly R

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le (b

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)

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30thRound

01

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Tech

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Driv

e re

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ent

30 30



Leverage technology

OGA role






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Supply Chain

Research Academia





June 2017

33

22

107

16

21

8

5

18

No Submission

No plan

Limited plan

Good summary

plan

Comprehensive plan

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Good summary

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rage

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ata

31


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Low Capex Low Opex



Unmanned buoys




Plug-n-play

Re-usable

Composite spoolable













Leve

rage

tech

nolo

gy a

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ata

3232




Leve

rage

tech

nolo

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nd d

ata



2998 pipelines






Seismic

2D

Other

3D

3D642

104

4252

4998surveys

Other

2D

Infrastructure








8000 offshore wells


Wells


3333

OGA Data Centre







57k+users




Leve

rage

tech

nolo

gy a

nd d

ata

34

2017Established

Cost baseline






gt35 cost reduction

target


report


pound597bnpound58bn

pound557bn







case studies



Report

Project management

Warm Phase2 | Cold



Operating1 |


Well Abandonment



Topsidesremoval




preparation

PlanningScope

Execution












Planning Scope

Impr

ove

deco

mm

issi

onin

g effi

cien

cy

35

Impr

ove

deco

mm

issi

onin

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cien

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Well abandonment


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36


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Dev

elop

peo

ple

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cess

es a

nd s

yste

ms

37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




5Improve





End 2021



38








Exploration










Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

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ly C

hain



Dec

omm

issi

onin

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Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






11





1Stewardship

2Facilitation

Esca

latin

g le

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f OG

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terv

entio

n



OGApowers4

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5





MER UK benefits all

Asset Stewardship


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of P

ower

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Successes to date60

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OGA Powers5

Issues

Cases

Area Plans

12

Delivering value






Decommissioning


UKCS exploration







Energy transition






41 thousandboed

Small cap

Mid cap



Other

Utilities

23


41 thousandboed

Small cap

Mid cap



Other

Utilities



on throughput

2014

2018

2018Production

2014Production

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other

Utilities

Key

41 thousandboed

Small cap

Mid cap



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Utilities

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other


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Mid cap



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Utilities


14


from 32 to 10










costs







1

2

3

15












16





Vendor finance

Private equity





























18

Resource base(n

umbe

rs in

billi

on b

oe a

s at

end

201

7)

2017

changes

018

06






75unsanctioned


54 sanctioned



Rang

e of

tota

l pot

entia

l res

ourc

es

ca 1

0 to

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Alligin

Galleon

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Buzzard Phase 2

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Arran

Finlaggan

Columbus

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Joanne

Captain

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Ballindalloch

Dunlin Bypass

Mariner

Utgard

Buckand

20


00

05

10

15

20

2015

2020

2025

2030

2035

2040

2045

2050


Vision Scenario





Estim

ated

add

ition

al c

ontr

ibut

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boe)

0

02

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10

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factors

RecentEampA

ActivityFuture

Exploration

094

090

028

061

025030030032


39bnboe

Additional

21

Measuring success




DAYS









852


10661918

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Influence

Promote

Regulate


Actual poundM 308


22

Key


4

444

4444

44 44

4

4

44444

44

444444

444444

44 4

44

4444

4444444444444 44

44




4

4

4

4

4

4

4

4

Greater Buchan Area


2019 2020 2021

31st

supplementary Q1

32nd

33rd


Mature Areas

Frontier Areas

Round opens

Round closes

Licence awards


Rev

italis

e ex

plor

atio

n








23

Rev

italis

e ex

plor

atio

n

11

14 11

090904

23

20

17 13

11

04 05

03Reserves




NNS

35




4716

14

08 WoS

17

25

Rockall Trough










No Exploration

Wells



$boe


2014 13 69 9 83

2015 15 53 5 115

2016 11 45 5 64

2017 15 47 35 131

2018 7 43 1 175

24

Impr

ove

asse

t ste

war

dshi




LEADS

PLAY

PROSPECT

POTENTIALIN

FIELD

SANC

TIO

NED

DEVE

LOPM

ENTS

DEVELOPMENT

UNDER

PRODUCING

OPTIMISATION

DEVELOPMENTS

DISCOVERIES

(Mean unrisked)

CONTINGENT

RESOURCES

PROSPECTIVE

RESO

URCES

(2C)

RESERVES (2P)

PRODUCTION

All UKCS Operators





reductionResource

Progression

Senior Leadership

Tier ZeroTier One

Tier Two





Net

uni

t ope

ratin

g co

st (pound

boe

)

Operators


35

30

25

20

15

10

5

0






25




Field quality index

Rec

over

y fa

ctor

Operator X

Operator X

2017

Res

erve

s R

epla

cem

ent

Operator X

Operator X


Operator X

Expl

orat

ion

KPI s

core

Operator Xpoundboe

0 5 10 15 20 25 30

Operator X

Acquisition

Processing0102030405060708090100

0102030405060708090100

Operator X

Operator X

Operator X

Impr

ove

asse

t ste

war

dshi

p

Operator X

2626 26

Wells


Leve

rage

tech

nolo

gy a

nd d

ata


The Story so far



Delivering

44 billion barrels



19 EampA Wells

56 Development

wells

2128 Wells in

operation







but

Well abandonment








44






SCAPs




OGA Supporting





Project Pathfinder

Online project data



2015pound35bn

2016pound30bn

2017pound27bn

85

60

80




Cre

ate

the

right

con

ditio

ns

28

Area plans


Driv

e re

gion

al d

evel

opm

ent


East of Shetland

Quad 9 Gas

Outer Moray Firth



East Irish Sea

Tight Gas



Penguins











29




WOS

NNS

MFB

CNS

SNS

EIS






EIS East Irish Sea


1

2

3

Tech

nica

lly R

ecov

erab

le (b

nboe

)

Licensed

Unlicensed

30thRound

01

1

10

100

Licensed Unlicensed


Tech

nica

lly

reco

vera

ble

(mm

boe)

Technology











Clustering



Source OGA data

Driv

e re

gion

al d

evel

opm

ent

30 30



Leverage technology

OGA role






Priorities







Supply Chain

Research Academia





June 2017

33

22

107

16

21

8

5

18

No Submission

No plan

Limited plan

Good summary

plan

Comprehensive plan

No plan

Limited plan

Good summary

plan

Comprehensive plan










Leve

rage

tech

nolo

gy a

nd d

ata

31


Inspection drones

Thermite PampA


Low Capex Low Opex



Unmanned buoys




Plug-n-play

Re-usable

Composite spoolable













Leve

rage

tech

nolo

gy a

nd d

ata

3232




Leve

rage

tech

nolo

gy a

nd d

ata



2998 pipelines






Seismic

2D

Other

3D

3D642

104

4252

4998surveys

Other

2D

Infrastructure








8000 offshore wells


Wells


3333

OGA Data Centre







57k+users




Leve

rage

tech

nolo

gy a

nd d

ata

34

2017Established

Cost baseline






gt35 cost reduction

target


report


pound597bnpound58bn

pound557bn







case studies



Report

Project management

Warm Phase2 | Cold



Operating1 |


Well Abandonment



Topsidesremoval




preparation

PlanningScope

Execution












Planning Scope

Impr

ove

deco

mm

issi

onin

g effi

cien

cy

35

Impr

ove

deco

mm

issi

onin

g effi

cien

cy










Well abandonment


Structural removals



36


Onshore Licences












Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




5Improve





End 2021



38








Exploration










Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

gy

bull Thermite PampA




Wel






Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






12

Delivering value






Decommissioning


UKCS exploration







Energy transition






41 thousandboed

Small cap

Mid cap



Other

Utilities

23


41 thousandboed

Small cap

Mid cap



Other

Utilities



on throughput

2014

2018

2018Production

2014Production

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other

Utilities

Key

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other


Small cap

Mid cap



Other

Utilities


14


from 32 to 10










costs







1

2

3

15












16





Vendor finance

Private equity





























18

Resource base(n

umbe

rs in

billi

on b

oe a

s at

end

201

7)

2017

changes

018

06






75unsanctioned


54 sanctioned



Rang

e of

tota

l pot

entia

l res

ourc

es

ca 1

0 to

20b

n bo

e

01



112 in plays





NNS

WOS

CNS

SNSIS

Lancaster EPS

Alligin

Galleon

Tolmount

Fram

Buzzard Phase 2

Culzean

Arran

Finlaggan

Columbus

Vorlich

Joanne

Captain

Shearwater Re-Plumb

Orlando

Penguins

West Brae

Ballindalloch

Dunlin Bypass

Mariner

Utgard

Buckand

20


00

05

10

15

20

2015

2020

2025

2030

2035

2040

2045

2050


Vision Scenario





Estim

ated

add

ition

al c

ontr

ibut

ion

(bn

boe)

0

02

04

06

08

10

2015-18Extra


COP

InfieldReserves

Aid EORProject

SanctionsOther

factors

RecentEampA

ActivityFuture

Exploration

094

090

028

061

025030030032


39bnboe

Additional

21

Measuring success




DAYS









852


10661918

Production volume

Technologies





Influence

Promote

Regulate


Actual poundM 308


22

Key


4

444

4444

44 44

4

4

44444

44

444444

444444

44 4

44

4444

4444444444444 44

44




4

4

4

4

4

4

4

4

Greater Buchan Area


2019 2020 2021

31st

supplementary Q1

32nd

33rd


Mature Areas

Frontier Areas

Round opens

Round closes

Licence awards


Rev

italis

e ex

plor

atio

n








23

Rev

italis

e ex

plor

atio

n

11

14 11

090904

23

20

17 13

11

04 05

03Reserves




NNS

35




4716

14

08 WoS

17

25

Rockall Trough










No Exploration

Wells



$boe


2014 13 69 9 83

2015 15 53 5 115

2016 11 45 5 64

2017 15 47 35 131

2018 7 43 1 175

24

Impr

ove

asse

t ste

war

dshi




LEADS

PLAY

PROSPECT

POTENTIALIN

FIELD

SANC

TIO

NED

DEVE

LOPM

ENTS

DEVELOPMENT

UNDER

PRODUCING

OPTIMISATION

DEVELOPMENTS

DISCOVERIES

(Mean unrisked)

CONTINGENT

RESOURCES

PROSPECTIVE

RESO

URCES

(2C)

RESERVES (2P)

PRODUCTION

All UKCS Operators





reductionResource

Progression

Senior Leadership

Tier ZeroTier One

Tier Two





Net

uni

t ope

ratin

g co

st (pound

boe

)

Operators


35

30

25

20

15

10

5

0






25




Field quality index

Rec

over

y fa

ctor

Operator X

Operator X

2017

Res

erve

s R

epla

cem

ent

Operator X

Operator X


Operator X

Expl

orat

ion

KPI s

core

Operator Xpoundboe

0 5 10 15 20 25 30

Operator X

Acquisition

Processing0102030405060708090100

0102030405060708090100

Operator X

Operator X

Operator X

Impr

ove

asse

t ste

war

dshi

p

Operator X

2626 26

Wells


Leve

rage

tech

nolo

gy a

nd d

ata


The Story so far



Delivering

44 billion barrels



19 EampA Wells

56 Development

wells

2128 Wells in

operation







but

Well abandonment








44






SCAPs




OGA Supporting





Project Pathfinder

Online project data



2015pound35bn

2016pound30bn

2017pound27bn

85

60

80




Cre

ate

the

right

con

ditio

ns

28

Area plans


Driv

e re

gion

al d

evel

opm

ent


East of Shetland

Quad 9 Gas

Outer Moray Firth



East Irish Sea

Tight Gas



Penguins











29




WOS

NNS

MFB

CNS

SNS

EIS






EIS East Irish Sea


1

2

3

Tech

nica

lly R

ecov

erab

le (b

nboe

)

Licensed

Unlicensed

30thRound

01

1

10

100

Licensed Unlicensed


Tech

nica

lly

reco

vera

ble

(mm

boe)

Technology











Clustering



Source OGA data

Driv

e re

gion

al d

evel

opm

ent

30 30



Leverage technology

OGA role






Priorities







Supply Chain

Research Academia





June 2017

33

22

107

16

21

8

5

18

No Submission

No plan

Limited plan

Good summary

plan

Comprehensive plan

No plan

Limited plan

Good summary

plan

Comprehensive plan










Leve

rage

tech

nolo

gy a

nd d

ata

31


Inspection drones

Thermite PampA


Low Capex Low Opex



Unmanned buoys




Plug-n-play

Re-usable

Composite spoolable













Leve

rage

tech

nolo

gy a

nd d

ata

3232




Leve

rage

tech

nolo

gy a

nd d

ata



2998 pipelines






Seismic

2D

Other

3D

3D642

104

4252

4998surveys

Other

2D

Infrastructure








8000 offshore wells


Wells


3333

OGA Data Centre







57k+users




Leve

rage

tech

nolo

gy a

nd d

ata

34

2017Established

Cost baseline






gt35 cost reduction

target


report


pound597bnpound58bn

pound557bn







case studies



Report

Project management

Warm Phase2 | Cold



Operating1 |


Well Abandonment



Topsidesremoval




preparation

PlanningScope

Execution












Planning Scope

Impr

ove

deco

mm

issi

onin

g effi

cien

cy

35

Impr

ove

deco

mm

issi

onin

g effi

cien

cy










Well abandonment


Structural removals



36


Onshore Licences












Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




5Improve





End 2021



38








Exploration










Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

gy

bull Thermite PampA




Wel






Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk








41 thousandboed

Small cap

Mid cap



Other

Utilities

23


41 thousandboed

Small cap

Mid cap



Other

Utilities



on throughput

2014

2018

2018Production

2014Production

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other

Utilities

Key

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other

Utilities

41 thousandboed

Small cap

Mid cap



Other


Small cap

Mid cap



Other

Utilities


14


from 32 to 10










costs







1

2

3

15












16





Vendor finance

Private equity





























18

Resource base(n

umbe

rs in

billi

on b

oe a

s at

end

201

7)

2017

changes

018

06






75unsanctioned


54 sanctioned



Rang

e of

tota

l pot

entia

l res

ourc

es

ca 1

0 to

20b

n bo

e

01



112 in plays





NNS

WOS

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SNSIS

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Alligin

Galleon

Tolmount

Fram

Buzzard Phase 2

Culzean

Arran

Finlaggan

Columbus

Vorlich

Joanne

Captain

Shearwater Re-Plumb

Orlando

Penguins

West Brae

Ballindalloch

Dunlin Bypass

Mariner

Utgard

Buckand

20


00

05

10

15

20

2015

2020

2025

2030

2035

2040

2045

2050


Vision Scenario





Estim

ated

add

ition

al c

ontr

ibut

ion

(bn

boe)

0

02

04

06

08

10

2015-18Extra


COP

InfieldReserves

Aid EORProject

SanctionsOther

factors

RecentEampA

ActivityFuture

Exploration

094

090

028

061

025030030032


39bnboe

Additional

21

Measuring success




DAYS









852


10661918

Production volume

Technologies





Influence

Promote

Regulate


Actual poundM 308


22

Key


4

444

4444

44 44

4

4

44444

44

444444

444444

44 4

44

4444

4444444444444 44

44




4

4

4

4

4

4

4

4

Greater Buchan Area


2019 2020 2021

31st

supplementary Q1

32nd

33rd


Mature Areas

Frontier Areas

Round opens

Round closes

Licence awards


Rev

italis

e ex

plor

atio

n








23

Rev

italis

e ex

plor

atio

n

11

14 11

090904

23

20

17 13

11

04 05

03Reserves




NNS

35




4716

14

08 WoS

17

25

Rockall Trough










No Exploration

Wells



$boe


2014 13 69 9 83

2015 15 53 5 115

2016 11 45 5 64

2017 15 47 35 131

2018 7 43 1 175

24

Impr

ove

asse

t ste

war

dshi




LEADS

PLAY

PROSPECT

POTENTIALIN

FIELD

SANC

TIO

NED

DEVE

LOPM

ENTS

DEVELOPMENT

UNDER

PRODUCING

OPTIMISATION

DEVELOPMENTS

DISCOVERIES

(Mean unrisked)

CONTINGENT

RESOURCES

PROSPECTIVE

RESO

URCES

(2C)

RESERVES (2P)

PRODUCTION

All UKCS Operators





reductionResource

Progression

Senior Leadership

Tier ZeroTier One

Tier Two





Net

uni

t ope

ratin

g co

st (pound

boe

)

Operators


35

30

25

20

15

10

5

0






25




Field quality index

Rec

over

y fa

ctor

Operator X

Operator X

2017

Res

erve

s R

epla

cem

ent

Operator X

Operator X


Operator X

Expl

orat

ion

KPI s

core

Operator Xpoundboe

0 5 10 15 20 25 30

Operator X

Acquisition

Processing0102030405060708090100

0102030405060708090100

Operator X

Operator X

Operator X

Impr

ove

asse

t ste

war

dshi

p

Operator X

2626 26

Wells


Leve

rage

tech

nolo

gy a

nd d

ata


The Story so far



Delivering

44 billion barrels



19 EampA Wells

56 Development

wells

2128 Wells in

operation







but

Well abandonment








44






SCAPs




OGA Supporting





Project Pathfinder

Online project data



2015pound35bn

2016pound30bn

2017pound27bn

85

60

80




Cre

ate

the

right

con

ditio

ns

28

Area plans


Driv

e re

gion

al d

evel

opm

ent


East of Shetland

Quad 9 Gas

Outer Moray Firth



East Irish Sea

Tight Gas



Penguins











29




WOS

NNS

MFB

CNS

SNS

EIS






EIS East Irish Sea


1

2

3

Tech

nica

lly R

ecov

erab

le (b

nboe

)

Licensed

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30thRound

01

1

10

100

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Tech

nica

lly

reco

vera

ble

(mm

boe)

Technology











Clustering



Source OGA data

Driv

e re

gion

al d

evel

opm

ent

30 30



Leverage technology

OGA role






Priorities







Supply Chain

Research Academia





June 2017

33

22

107

16

21

8

5

18

No Submission

No plan

Limited plan

Good summary

plan

Comprehensive plan

No plan

Limited plan

Good summary

plan

Comprehensive plan










Leve

rage

tech

nolo

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ata

31


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Thermite PampA


Low Capex Low Opex



Unmanned buoys




Plug-n-play

Re-usable

Composite spoolable













Leve

rage

tech

nolo

gy a

nd d

ata

3232




Leve

rage

tech

nolo

gy a

nd d

ata



2998 pipelines






Seismic

2D

Other

3D

3D642

104

4252

4998surveys

Other

2D

Infrastructure








8000 offshore wells


Wells


3333

OGA Data Centre







57k+users




Leve

rage

tech

nolo

gy a

nd d

ata

34

2017Established

Cost baseline






gt35 cost reduction

target


report


pound597bnpound58bn

pound557bn







case studies



Report

Project management

Warm Phase2 | Cold



Operating1 |


Well Abandonment



Topsidesremoval




preparation

PlanningScope

Execution












Planning Scope

Impr

ove

deco

mm

issi

onin

g effi

cien

cy

35

Impr

ove

deco

mm

issi

onin

g effi

cien

cy










Well abandonment


Structural removals



36


Onshore Licences












Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




5Improve





End 2021



38








Exploration










Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

gy

bull Thermite PampA




Wel






Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






14


from 32 to 10










costs







1

2

3

15












16





Vendor finance

Private equity





























18

Resource base(n

umbe

rs in

billi

on b

oe a

s at

end

201

7)

2017

changes

018

06






75unsanctioned


54 sanctioned



Rang

e of

tota

l pot

entia

l res

ourc

es

ca 1

0 to

20b

n bo

e

01



112 in plays





NNS

WOS

CNS

SNSIS

Lancaster EPS

Alligin

Galleon

Tolmount

Fram

Buzzard Phase 2

Culzean

Arran

Finlaggan

Columbus

Vorlich

Joanne

Captain

Shearwater Re-Plumb

Orlando

Penguins

West Brae

Ballindalloch

Dunlin Bypass

Mariner

Utgard

Buckand

20


00

05

10

15

20

2015

2020

2025

2030

2035

2040

2045

2050


Vision Scenario





Estim

ated

add

ition

al c

ontr

ibut

ion

(bn

boe)

0

02

04

06

08

10

2015-18Extra


COP

InfieldReserves

Aid EORProject

SanctionsOther

factors

RecentEampA

ActivityFuture

Exploration

094

090

028

061

025030030032


39bnboe

Additional

21

Measuring success




DAYS









852


10661918

Production volume

Technologies





Influence

Promote

Regulate


Actual poundM 308


22

Key


4

444

4444

44 44

4

4

44444

44

444444

444444

44 4

44

4444

4444444444444 44

44




4

4

4

4

4

4

4

4

Greater Buchan Area


2019 2020 2021

31st

supplementary Q1

32nd

33rd


Mature Areas

Frontier Areas

Round opens

Round closes

Licence awards


Rev

italis

e ex

plor

atio

n








23

Rev

italis

e ex

plor

atio

n

11

14 11

090904

23

20

17 13

11

04 05

03Reserves




NNS

35




4716

14

08 WoS

17

25

Rockall Trough










No Exploration

Wells



$boe


2014 13 69 9 83

2015 15 53 5 115

2016 11 45 5 64

2017 15 47 35 131

2018 7 43 1 175

24

Impr

ove

asse

t ste

war

dshi




LEADS

PLAY

PROSPECT

POTENTIALIN

FIELD

SANC

TIO

NED

DEVE

LOPM

ENTS

DEVELOPMENT

UNDER

PRODUCING

OPTIMISATION

DEVELOPMENTS

DISCOVERIES

(Mean unrisked)

CONTINGENT

RESOURCES

PROSPECTIVE

RESO

URCES

(2C)

RESERVES (2P)

PRODUCTION

All UKCS Operators





reductionResource

Progression

Senior Leadership

Tier ZeroTier One

Tier Two





Net

uni

t ope

ratin

g co

st (pound

boe

)

Operators


35

30

25

20

15

10

5

0






25




Field quality index

Rec

over

y fa

ctor

Operator X

Operator X

2017

Res

erve

s R

epla

cem

ent

Operator X

Operator X


Operator X

Expl

orat

ion

KPI s

core

Operator Xpoundboe

0 5 10 15 20 25 30

Operator X

Acquisition

Processing0102030405060708090100

0102030405060708090100

Operator X

Operator X

Operator X

Impr

ove

asse

t ste

war

dshi

p

Operator X

2626 26

Wells


Leve

rage

tech

nolo

gy a

nd d

ata


The Story so far



Delivering

44 billion barrels



19 EampA Wells

56 Development

wells

2128 Wells in

operation







but

Well abandonment








44






SCAPs




OGA Supporting





Project Pathfinder

Online project data



2015pound35bn

2016pound30bn

2017pound27bn

85

60

80




Cre

ate

the

right

con

ditio

ns

28

Area plans


Driv

e re

gion

al d

evel

opm

ent


East of Shetland

Quad 9 Gas

Outer Moray Firth



East Irish Sea

Tight Gas



Penguins











29




WOS

NNS

MFB

CNS

SNS

EIS






EIS East Irish Sea


1

2

3

Tech

nica

lly R

ecov

erab

le (b

nboe

)

Licensed

Unlicensed

30thRound

01

1

10

100

Licensed Unlicensed


Tech

nica

lly

reco

vera

ble

(mm

boe)

Technology











Clustering



Source OGA data

Driv

e re

gion

al d

evel

opm

ent

30 30



Leverage technology

OGA role






Priorities







Supply Chain

Research Academia





June 2017

33

22

107

16

21

8

5

18

No Submission

No plan

Limited plan

Good summary

plan

Comprehensive plan

No plan

Limited plan

Good summary

plan

Comprehensive plan










Leve

rage

tech

nolo

gy a

nd d

ata

31


Inspection drones

Thermite PampA


Low Capex Low Opex



Unmanned buoys




Plug-n-play

Re-usable

Composite spoolable













Leve

rage

tech

nolo

gy a

nd d

ata

3232




Leve

rage

tech

nolo

gy a

nd d

ata



2998 pipelines






Seismic

2D

Other

3D

3D642

104

4252

4998surveys

Other

2D

Infrastructure








8000 offshore wells


Wells


3333

OGA Data Centre







57k+users




Leve

rage

tech

nolo

gy a

nd d

ata

34

2017Established

Cost baseline






gt35 cost reduction

target


report


pound597bnpound58bn

pound557bn







case studies



Report

Project management

Warm Phase2 | Cold



Operating1 |


Well Abandonment



Topsidesremoval




preparation

PlanningScope

Execution












Planning Scope

Impr

ove

deco

mm

issi

onin

g effi

cien

cy

35

Impr

ove

deco

mm

issi

onin

g effi

cien

cy










Well abandonment


Structural removals



36


Onshore Licences












Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




5Improve





End 2021



38








Exploration










Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

gy

bull Thermite PampA




Wel






Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






15












16





Vendor finance

Private equity





























18

Resource base(n

umbe

rs in

billi

on b

oe a

s at

end

201

7)

2017

changes

018

06






75unsanctioned


54 sanctioned



Rang

e of

tota

l pot

entia

l res

ourc

es

ca 1

0 to

20b

n bo

e

01



112 in plays





NNS

WOS

CNS

SNSIS

Lancaster EPS

Alligin

Galleon

Tolmount

Fram

Buzzard Phase 2

Culzean

Arran

Finlaggan

Columbus

Vorlich

Joanne

Captain

Shearwater Re-Plumb

Orlando

Penguins

West Brae

Ballindalloch

Dunlin Bypass

Mariner

Utgard

Buckand

20


00

05

10

15

20

2015

2020

2025

2030

2035

2040

2045

2050


Vision Scenario





Estim

ated

add

ition

al c

ontr

ibut

ion

(bn

boe)

0

02

04

06

08

10

2015-18Extra


COP

InfieldReserves

Aid EORProject

SanctionsOther

factors

RecentEampA

ActivityFuture

Exploration

094

090

028

061

025030030032


39bnboe

Additional

21

Measuring success




DAYS









852


10661918

Production volume

Technologies





Influence

Promote

Regulate


Actual poundM 308


22

Key


4

444

4444

44 44

4

4

44444

44

444444

444444

44 4

44

4444

4444444444444 44

44




4

4

4

4

4

4

4

4

Greater Buchan Area


2019 2020 2021

31st

supplementary Q1

32nd

33rd


Mature Areas

Frontier Areas

Round opens

Round closes

Licence awards


Rev

italis

e ex

plor

atio

n








23

Rev

italis

e ex

plor

atio

n

11

14 11

090904

23

20

17 13

11

04 05

03Reserves




NNS

35




4716

14

08 WoS

17

25

Rockall Trough










No Exploration

Wells



$boe


2014 13 69 9 83

2015 15 53 5 115

2016 11 45 5 64

2017 15 47 35 131

2018 7 43 1 175

24

Impr

ove

asse

t ste

war

dshi




LEADS

PLAY

PROSPECT

POTENTIALIN

FIELD

SANC

TIO

NED

DEVE

LOPM

ENTS

DEVELOPMENT

UNDER

PRODUCING

OPTIMISATION

DEVELOPMENTS

DISCOVERIES

(Mean unrisked)

CONTINGENT

RESOURCES

PROSPECTIVE

RESO

URCES

(2C)

RESERVES (2P)

PRODUCTION

All UKCS Operators





reductionResource

Progression

Senior Leadership

Tier ZeroTier One

Tier Two





Net

uni

t ope

ratin

g co

st (pound

boe

)

Operators


35

30

25

20

15

10

5

0






25




Field quality index

Rec

over

y fa

ctor

Operator X

Operator X

2017

Res

erve

s R

epla

cem

ent

Operator X

Operator X


Operator X

Expl

orat

ion

KPI s

core

Operator Xpoundboe

0 5 10 15 20 25 30

Operator X

Acquisition

Processing0102030405060708090100

0102030405060708090100

Operator X

Operator X

Operator X

Impr

ove

asse

t ste

war

dshi

p

Operator X

2626 26

Wells


Leve

rage

tech

nolo

gy a

nd d

ata


The Story so far



Delivering

44 billion barrels



19 EampA Wells

56 Development

wells

2128 Wells in

operation







but

Well abandonment








44






SCAPs




OGA Supporting





Project Pathfinder

Online project data



2015pound35bn

2016pound30bn

2017pound27bn

85

60

80




Cre

ate

the

right

con

ditio

ns

28

Area plans


Driv

e re

gion

al d

evel

opm

ent


East of Shetland

Quad 9 Gas

Outer Moray Firth



East Irish Sea

Tight Gas



Penguins











29




WOS

NNS

MFB

CNS

SNS

EIS






EIS East Irish Sea


1

2

3

Tech

nica

lly R

ecov

erab

le (b

nboe

)

Licensed

Unlicensed

30thRound

01

1

10

100

Licensed Unlicensed


Tech

nica

lly

reco

vera

ble

(mm

boe)

Technology











Clustering



Source OGA data

Driv

e re

gion

al d

evel

opm

ent

30 30



Leverage technology

OGA role






Priorities







Supply Chain

Research Academia





June 2017

33

22

107

16

21

8

5

18

No Submission

No plan

Limited plan

Good summary

plan

Comprehensive plan

No plan

Limited plan

Good summary

plan

Comprehensive plan










Leve

rage

tech

nolo

gy a

nd d

ata

31


Inspection drones

Thermite PampA


Low Capex Low Opex



Unmanned buoys




Plug-n-play

Re-usable

Composite spoolable













Leve

rage

tech

nolo

gy a

nd d

ata

3232




Leve

rage

tech

nolo

gy a

nd d

ata



2998 pipelines






Seismic

2D

Other

3D

3D642

104

4252

4998surveys

Other

2D

Infrastructure








8000 offshore wells


Wells


3333

OGA Data Centre







57k+users




Leve

rage

tech

nolo

gy a

nd d

ata

34

2017Established

Cost baseline






gt35 cost reduction

target


report


pound597bnpound58bn

pound557bn







case studies



Report

Project management

Warm Phase2 | Cold



Operating1 |


Well Abandonment



Topsidesremoval




preparation

PlanningScope

Execution












Planning Scope

Impr

ove

deco

mm

issi

onin

g effi

cien

cy

35

Impr

ove

deco

mm

issi

onin

g effi

cien

cy










Well abandonment


Structural removals



36


Onshore Licences












Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




5Improve





End 2021



38








Exploration










Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

gy

bull Thermite PampA




Wel






Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






16





Vendor finance

Private equity





























18

Resource base(n

umbe

rs in

billi

on b

oe a

s at

end

201

7)

2017

changes

018

06






75unsanctioned


54 sanctioned



Rang

e of

tota

l pot

entia

l res

ourc

es

ca 1

0 to

20b

n bo

e

01



112 in plays





NNS

WOS

CNS

SNSIS

Lancaster EPS

Alligin

Galleon

Tolmount

Fram

Buzzard Phase 2

Culzean

Arran

Finlaggan

Columbus

Vorlich

Joanne

Captain

Shearwater Re-Plumb

Orlando

Penguins

West Brae

Ballindalloch

Dunlin Bypass

Mariner

Utgard

Buckand

20


00

05

10

15

20

2015

2020

2025

2030

2035

2040

2045

2050


Vision Scenario





Estim

ated

add

ition

al c

ontr

ibut

ion

(bn

boe)

0

02

04

06

08

10

2015-18Extra


COP

InfieldReserves

Aid EORProject

SanctionsOther

factors

RecentEampA

ActivityFuture

Exploration

094

090

028

061

025030030032


39bnboe

Additional

21

Measuring success




DAYS









852


10661918

Production volume

Technologies





Influence

Promote

Regulate


Actual poundM 308


22

Key


4

444

4444

44 44

4

4

44444

44

444444

444444

44 4

44

4444

4444444444444 44

44




4

4

4

4

4

4

4

4

Greater Buchan Area


2019 2020 2021

31st

supplementary Q1

32nd

33rd


Mature Areas

Frontier Areas

Round opens

Round closes

Licence awards


Rev

italis

e ex

plor

atio

n








23

Rev

italis

e ex

plor

atio

n

11

14 11

090904

23

20

17 13

11

04 05

03Reserves




NNS

35




4716

14

08 WoS

17

25

Rockall Trough










No Exploration

Wells



$boe


2014 13 69 9 83

2015 15 53 5 115

2016 11 45 5 64

2017 15 47 35 131

2018 7 43 1 175

24

Impr

ove

asse

t ste

war

dshi




LEADS

PLAY

PROSPECT

POTENTIALIN

FIELD

SANC

TIO

NED

DEVE

LOPM

ENTS

DEVELOPMENT

UNDER

PRODUCING

OPTIMISATION

DEVELOPMENTS

DISCOVERIES

(Mean unrisked)

CONTINGENT

RESOURCES

PROSPECTIVE

RESO

URCES

(2C)

RESERVES (2P)

PRODUCTION

All UKCS Operators





reductionResource

Progression

Senior Leadership

Tier ZeroTier One

Tier Two





Net

uni

t ope

ratin

g co

st (pound

boe

)

Operators


35

30

25

20

15

10

5

0






25




Field quality index

Rec

over

y fa

ctor

Operator X

Operator X

2017

Res

erve

s R

epla

cem

ent

Operator X

Operator X


Operator X

Expl

orat

ion

KPI s

core

Operator Xpoundboe

0 5 10 15 20 25 30

Operator X

Acquisition

Processing0102030405060708090100

0102030405060708090100

Operator X

Operator X

Operator X

Impr

ove

asse

t ste

war

dshi

p

Operator X

2626 26

Wells


Leve

rage

tech

nolo

gy a

nd d

ata


The Story so far



Delivering

44 billion barrels



19 EampA Wells

56 Development

wells

2128 Wells in

operation







but

Well abandonment








44






SCAPs




OGA Supporting





Project Pathfinder

Online project data



2015pound35bn

2016pound30bn

2017pound27bn

85

60

80




Cre

ate

the

right

con

ditio

ns

28

Area plans


Driv

e re

gion

al d

evel

opm

ent


East of Shetland

Quad 9 Gas

Outer Moray Firth



East Irish Sea

Tight Gas



Penguins











29




WOS

NNS

MFB

CNS

SNS

EIS






EIS East Irish Sea


1

2

3

Tech

nica

lly R

ecov

erab

le (b

nboe

)

Licensed

Unlicensed

30thRound

01

1

10

100

Licensed Unlicensed


Tech

nica

lly

reco

vera

ble

(mm

boe)

Technology











Clustering



Source OGA data

Driv

e re

gion

al d

evel

opm

ent

30 30



Leverage technology

OGA role






Priorities







Supply Chain

Research Academia





June 2017

33

22

107

16

21

8

5

18

No Submission

No plan

Limited plan

Good summary

plan

Comprehensive plan

No plan

Limited plan

Good summary

plan

Comprehensive plan










Leve

rage

tech

nolo

gy a

nd d

ata

31


Inspection drones

Thermite PampA


Low Capex Low Opex



Unmanned buoys




Plug-n-play

Re-usable

Composite spoolable













Leve

rage

tech

nolo

gy a

nd d

ata

3232




Leve

rage

tech

nolo

gy a

nd d

ata



2998 pipelines






Seismic

2D

Other

3D

3D642

104

4252

4998surveys

Other

2D

Infrastructure








8000 offshore wells


Wells


3333

OGA Data Centre







57k+users




Leve

rage

tech

nolo

gy a

nd d

ata

34

2017Established

Cost baseline






gt35 cost reduction

target


report


pound597bnpound58bn

pound557bn







case studies



Report

Project management

Warm Phase2 | Cold



Operating1 |


Well Abandonment



Topsidesremoval




preparation

PlanningScope

Execution












Planning Scope

Impr

ove

deco

mm

issi

onin

g effi

cien

cy

35

Impr

ove

deco

mm

issi

onin

g effi

cien

cy










Well abandonment


Structural removals



36


Onshore Licences












Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




5Improve





End 2021



38








Exploration










Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

gy

bull Thermite PampA




Wel






Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk












18

Resource base(n

umbe

rs in

billi

on b

oe a

s at

end

201

7)

2017

changes

018

06






75unsanctioned


54 sanctioned



Rang

e of

tota

l pot

entia

l res

ourc

es

ca 1

0 to

20b

n bo

e

01



112 in plays





NNS

WOS

CNS

SNSIS

Lancaster EPS

Alligin

Galleon

Tolmount

Fram

Buzzard Phase 2

Culzean

Arran

Finlaggan

Columbus

Vorlich

Joanne

Captain

Shearwater Re-Plumb

Orlando

Penguins

West Brae

Ballindalloch

Dunlin Bypass

Mariner

Utgard

Buckand

20


00

05

10

15

20

2015

2020

2025

2030

2035

2040

2045

2050


Vision Scenario





Estim

ated

add

ition

al c

ontr

ibut

ion

(bn

boe)

0

02

04

06

08

10

2015-18Extra


COP

InfieldReserves

Aid EORProject

SanctionsOther

factors

RecentEampA

ActivityFuture

Exploration

094

090

028

061

025030030032


39bnboe

Additional

21

Measuring success




DAYS









852


10661918

Production volume

Technologies





Influence

Promote

Regulate


Actual poundM 308


22

Key


4

444

4444

44 44

4

4

44444

44

444444

444444

44 4

44

4444

4444444444444 44

44




4

4

4

4

4

4

4

4

Greater Buchan Area


2019 2020 2021

31st

supplementary Q1

32nd

33rd


Mature Areas

Frontier Areas

Round opens

Round closes

Licence awards


Rev

italis

e ex

plor

atio

n








23

Rev

italis

e ex

plor

atio

n

11

14 11

090904

23

20

17 13

11

04 05

03Reserves




NNS

35




4716

14

08 WoS

17

25

Rockall Trough










No Exploration

Wells



$boe


2014 13 69 9 83

2015 15 53 5 115

2016 11 45 5 64

2017 15 47 35 131

2018 7 43 1 175

24

Impr

ove

asse

t ste

war

dshi




LEADS

PLAY

PROSPECT

POTENTIALIN

FIELD

SANC

TIO

NED

DEVE

LOPM

ENTS

DEVELOPMENT

UNDER

PRODUCING

OPTIMISATION

DEVELOPMENTS

DISCOVERIES

(Mean unrisked)

CONTINGENT

RESOURCES

PROSPECTIVE

RESO

URCES

(2C)

RESERVES (2P)

PRODUCTION

All UKCS Operators





reductionResource

Progression

Senior Leadership

Tier ZeroTier One

Tier Two





Net

uni

t ope

ratin

g co

st (pound

boe

)

Operators


35

30

25

20

15

10

5

0






25




Field quality index

Rec

over

y fa

ctor

Operator X

Operator X

2017

Res

erve

s R

epla

cem

ent

Operator X

Operator X


Operator X

Expl

orat

ion

KPI s

core

Operator Xpoundboe

0 5 10 15 20 25 30

Operator X

Acquisition

Processing0102030405060708090100

0102030405060708090100

Operator X

Operator X

Operator X

Impr

ove

asse

t ste

war

dshi

p

Operator X

2626 26

Wells


Leve

rage

tech

nolo

gy a

nd d

ata


The Story so far



Delivering

44 billion barrels



19 EampA Wells

56 Development

wells

2128 Wells in

operation







but

Well abandonment








44






SCAPs




OGA Supporting





Project Pathfinder

Online project data



2015pound35bn

2016pound30bn

2017pound27bn

85

60

80




Cre

ate

the

right

con

ditio

ns

28

Area plans


Driv

e re

gion

al d

evel

opm

ent


East of Shetland

Quad 9 Gas

Outer Moray Firth



East Irish Sea

Tight Gas



Penguins











29




WOS

NNS

MFB

CNS

SNS

EIS






EIS East Irish Sea


1

2

3

Tech

nica

lly R

ecov

erab

le (b

nboe

)

Licensed

Unlicensed

30thRound

01

1

10

100

Licensed Unlicensed


Tech

nica

lly

reco

vera

ble

(mm

boe)

Technology











Clustering



Source OGA data

Driv

e re

gion

al d

evel

opm

ent

30 30



Leverage technology

OGA role






Priorities







Supply Chain

Research Academia





June 2017

33

22

107

16

21

8

5

18

No Submission

No plan

Limited plan

Good summary

plan

Comprehensive plan

No plan

Limited plan

Good summary

plan

Comprehensive plan










Leve

rage

tech

nolo

gy a

nd d

ata

31


Inspection drones

Thermite PampA


Low Capex Low Opex



Unmanned buoys




Plug-n-play

Re-usable

Composite spoolable













Leve

rage

tech

nolo

gy a

nd d

ata

3232




Leve

rage

tech

nolo

gy a

nd d

ata



2998 pipelines






Seismic

2D

Other

3D

3D642

104

4252

4998surveys

Other

2D

Infrastructure








8000 offshore wells


Wells


3333

OGA Data Centre







57k+users




Leve

rage

tech

nolo

gy a

nd d

ata

34

2017Established

Cost baseline






gt35 cost reduction

target


report


pound597bnpound58bn

pound557bn







case studies



Report

Project management

Warm Phase2 | Cold



Operating1 |


Well Abandonment



Topsidesremoval




preparation

PlanningScope

Execution












Planning Scope

Impr

ove

deco

mm

issi

onin

g effi

cien

cy

35

Impr

ove

deco

mm

issi

onin

g effi

cien

cy










Well abandonment


Structural removals



36


Onshore Licences












Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




5Improve





End 2021



38








Exploration










Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

gy

bull Thermite PampA




Wel






Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






18

Resource base(n

umbe

rs in

billi

on b

oe a

s at

end

201

7)

2017

changes

018

06






75unsanctioned


54 sanctioned



Rang

e of

tota

l pot

entia

l res

ourc

es

ca 1

0 to

20b

n bo

e

01



112 in plays





NNS

WOS

CNS

SNSIS

Lancaster EPS

Alligin

Galleon

Tolmount

Fram

Buzzard Phase 2

Culzean

Arran

Finlaggan

Columbus

Vorlich

Joanne

Captain

Shearwater Re-Plumb

Orlando

Penguins

West Brae

Ballindalloch

Dunlin Bypass

Mariner

Utgard

Buckand

20


00

05

10

15

20

2015

2020

2025

2030

2035

2040

2045

2050


Vision Scenario





Estim

ated

add

ition

al c

ontr

ibut

ion

(bn

boe)

0

02

04

06

08

10

2015-18Extra


COP

InfieldReserves

Aid EORProject

SanctionsOther

factors

RecentEampA

ActivityFuture

Exploration

094

090

028

061

025030030032


39bnboe

Additional

21

Measuring success




DAYS









852


10661918

Production volume

Technologies





Influence

Promote

Regulate


Actual poundM 308


22

Key


4

444

4444

44 44

4

4

44444

44

444444

444444

44 4

44

4444

4444444444444 44

44




4

4

4

4

4

4

4

4

Greater Buchan Area


2019 2020 2021

31st

supplementary Q1

32nd

33rd


Mature Areas

Frontier Areas

Round opens

Round closes

Licence awards


Rev

italis

e ex

plor

atio

n








23

Rev

italis

e ex

plor

atio

n

11

14 11

090904

23

20

17 13

11

04 05

03Reserves




NNS

35




4716

14

08 WoS

17

25

Rockall Trough










No Exploration

Wells



$boe


2014 13 69 9 83

2015 15 53 5 115

2016 11 45 5 64

2017 15 47 35 131

2018 7 43 1 175

24

Impr

ove

asse

t ste

war

dshi




LEADS

PLAY

PROSPECT

POTENTIALIN

FIELD

SANC

TIO

NED

DEVE

LOPM

ENTS

DEVELOPMENT

UNDER

PRODUCING

OPTIMISATION

DEVELOPMENTS

DISCOVERIES

(Mean unrisked)

CONTINGENT

RESOURCES

PROSPECTIVE

RESO

URCES

(2C)

RESERVES (2P)

PRODUCTION

All UKCS Operators





reductionResource

Progression

Senior Leadership

Tier ZeroTier One

Tier Two





Net

uni

t ope

ratin

g co

st (pound

boe

)

Operators


35

30

25

20

15

10

5

0






25




Field quality index

Rec

over

y fa

ctor

Operator X

Operator X

2017

Res

erve

s R

epla

cem

ent

Operator X

Operator X


Operator X

Expl

orat

ion

KPI s

core

Operator Xpoundboe

0 5 10 15 20 25 30

Operator X

Acquisition

Processing0102030405060708090100

0102030405060708090100

Operator X

Operator X

Operator X

Impr

ove

asse

t ste

war

dshi

p

Operator X

2626 26

Wells


Leve

rage

tech

nolo

gy a

nd d

ata


The Story so far



Delivering

44 billion barrels



19 EampA Wells

56 Development

wells

2128 Wells in

operation







but

Well abandonment








44






SCAPs




OGA Supporting





Project Pathfinder

Online project data



2015pound35bn

2016pound30bn

2017pound27bn

85

60

80




Cre

ate

the

right

con

ditio

ns

28

Area plans


Driv

e re

gion

al d

evel

opm

ent


East of Shetland

Quad 9 Gas

Outer Moray Firth



East Irish Sea

Tight Gas



Penguins











29




WOS

NNS

MFB

CNS

SNS

EIS






EIS East Irish Sea


1

2

3

Tech

nica

lly R

ecov

erab

le (b

nboe

)

Licensed

Unlicensed

30thRound

01

1

10

100

Licensed Unlicensed


Tech

nica

lly

reco

vera

ble

(mm

boe)

Technology











Clustering



Source OGA data

Driv

e re

gion

al d

evel

opm

ent

30 30



Leverage technology

OGA role






Priorities







Supply Chain

Research Academia





June 2017

33

22

107

16

21

8

5

18

No Submission

No plan

Limited plan

Good summary

plan

Comprehensive plan

No plan

Limited plan

Good summary

plan

Comprehensive plan










Leve

rage

tech

nolo

gy a

nd d

ata

31


Inspection drones

Thermite PampA


Low Capex Low Opex



Unmanned buoys




Plug-n-play

Re-usable

Composite spoolable













Leve

rage

tech

nolo

gy a

nd d

ata

3232




Leve

rage

tech

nolo

gy a

nd d

ata



2998 pipelines






Seismic

2D

Other

3D

3D642

104

4252

4998surveys

Other

2D

Infrastructure








8000 offshore wells


Wells


3333

OGA Data Centre







57k+users




Leve

rage

tech

nolo

gy a

nd d

ata

34

2017Established

Cost baseline






gt35 cost reduction

target


report


pound597bnpound58bn

pound557bn







case studies



Report

Project management

Warm Phase2 | Cold



Operating1 |


Well Abandonment



Topsidesremoval




preparation

PlanningScope

Execution












Planning Scope

Impr

ove

deco

mm

issi

onin

g effi

cien

cy

35

Impr

ove

deco

mm

issi

onin

g effi

cien

cy










Well abandonment


Structural removals



36


Onshore Licences












Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




5Improve





End 2021



38








Exploration










Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

gy

bull Thermite PampA




Wel






Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk










NNS

WOS

CNS

SNSIS

Lancaster EPS

Alligin

Galleon

Tolmount

Fram

Buzzard Phase 2

Culzean

Arran

Finlaggan

Columbus

Vorlich

Joanne

Captain

Shearwater Re-Plumb

Orlando

Penguins

West Brae

Ballindalloch

Dunlin Bypass

Mariner

Utgard

Buckand

20


00

05

10

15

20

2015

2020

2025

2030

2035

2040

2045

2050


Vision Scenario





Estim

ated

add

ition

al c

ontr

ibut

ion

(bn

boe)

0

02

04

06

08

10

2015-18Extra


COP

InfieldReserves

Aid EORProject

SanctionsOther

factors

RecentEampA

ActivityFuture

Exploration

094

090

028

061

025030030032


39bnboe

Additional

21

Measuring success




DAYS









852


10661918

Production volume

Technologies





Influence

Promote

Regulate


Actual poundM 308


22

Key


4

444

4444

44 44

4

4

44444

44

444444

444444

44 4

44

4444

4444444444444 44

44




4

4

4

4

4

4

4

4

Greater Buchan Area


2019 2020 2021

31st

supplementary Q1

32nd

33rd


Mature Areas

Frontier Areas

Round opens

Round closes

Licence awards


Rev

italis

e ex

plor

atio

n








23

Rev

italis

e ex

plor

atio

n

11

14 11

090904

23

20

17 13

11

04 05

03Reserves




NNS

35




4716

14

08 WoS

17

25

Rockall Trough










No Exploration

Wells



$boe


2014 13 69 9 83

2015 15 53 5 115

2016 11 45 5 64

2017 15 47 35 131

2018 7 43 1 175

24

Impr

ove

asse

t ste

war

dshi




LEADS

PLAY

PROSPECT

POTENTIALIN

FIELD

SANC

TIO

NED

DEVE

LOPM

ENTS

DEVELOPMENT

UNDER

PRODUCING

OPTIMISATION

DEVELOPMENTS

DISCOVERIES

(Mean unrisked)

CONTINGENT

RESOURCES

PROSPECTIVE

RESO

URCES

(2C)

RESERVES (2P)

PRODUCTION

All UKCS Operators





reductionResource

Progression

Senior Leadership

Tier ZeroTier One

Tier Two





Net

uni

t ope

ratin

g co

st (pound

boe

)

Operators


35

30

25

20

15

10

5

0






25




Field quality index

Rec

over

y fa

ctor

Operator X

Operator X

2017

Res

erve

s R

epla

cem

ent

Operator X

Operator X


Operator X

Expl

orat

ion

KPI s

core

Operator Xpoundboe

0 5 10 15 20 25 30

Operator X

Acquisition

Processing0102030405060708090100

0102030405060708090100

Operator X

Operator X

Operator X

Impr

ove

asse

t ste

war

dshi

p

Operator X

2626 26

Wells


Leve

rage

tech

nolo

gy a

nd d

ata


The Story so far



Delivering

44 billion barrels



19 EampA Wells

56 Development

wells

2128 Wells in

operation







but

Well abandonment








44






SCAPs




OGA Supporting





Project Pathfinder

Online project data



2015pound35bn

2016pound30bn

2017pound27bn

85

60

80




Cre

ate

the

right

con

ditio

ns

28

Area plans


Driv

e re

gion

al d

evel

opm

ent


East of Shetland

Quad 9 Gas

Outer Moray Firth



East Irish Sea

Tight Gas



Penguins











29




WOS

NNS

MFB

CNS

SNS

EIS






EIS East Irish Sea


1

2

3

Tech

nica

lly R

ecov

erab

le (b

nboe

)

Licensed

Unlicensed

30thRound

01

1

10

100

Licensed Unlicensed


Tech

nica

lly

reco

vera

ble

(mm

boe)

Technology











Clustering



Source OGA data

Driv

e re

gion

al d

evel

opm

ent

30 30



Leverage technology

OGA role






Priorities







Supply Chain

Research Academia





June 2017

33

22

107

16

21

8

5

18

No Submission

No plan

Limited plan

Good summary

plan

Comprehensive plan

No plan

Limited plan

Good summary

plan

Comprehensive plan










Leve

rage

tech

nolo

gy a

nd d

ata

31


Inspection drones

Thermite PampA


Low Capex Low Opex



Unmanned buoys




Plug-n-play

Re-usable

Composite spoolable













Leve

rage

tech

nolo

gy a

nd d

ata

3232




Leve

rage

tech

nolo

gy a

nd d

ata



2998 pipelines






Seismic

2D

Other

3D

3D642

104

4252

4998surveys

Other

2D

Infrastructure








8000 offshore wells


Wells


3333

OGA Data Centre







57k+users




Leve

rage

tech

nolo

gy a

nd d

ata

34

2017Established

Cost baseline






gt35 cost reduction

target


report


pound597bnpound58bn

pound557bn







case studies



Report

Project management

Warm Phase2 | Cold



Operating1 |


Well Abandonment



Topsidesremoval




preparation

PlanningScope

Execution












Planning Scope

Impr

ove

deco

mm

issi

onin

g effi

cien

cy

35

Impr

ove

deco

mm

issi

onin

g effi

cien

cy










Well abandonment


Structural removals



36


Onshore Licences












Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




5Improve





End 2021



38








Exploration










Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

gy

bull Thermite PampA




Wel






Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






20


00

05

10

15

20

2015

2020

2025

2030

2035

2040

2045

2050


Vision Scenario





Estim

ated

add

ition

al c

ontr

ibut

ion

(bn

boe)

0

02

04

06

08

10

2015-18Extra


COP

InfieldReserves

Aid EORProject

SanctionsOther

factors

RecentEampA

ActivityFuture

Exploration

094

090

028

061

025030030032


39bnboe

Additional

21

Measuring success




DAYS









852


10661918

Production volume

Technologies





Influence

Promote

Regulate


Actual poundM 308


22

Key


4

444

4444

44 44

4

4

44444

44

444444

444444

44 4

44

4444

4444444444444 44

44




4

4

4

4

4

4

4

4

Greater Buchan Area


2019 2020 2021

31st

supplementary Q1

32nd

33rd


Mature Areas

Frontier Areas

Round opens

Round closes

Licence awards


Rev

italis

e ex

plor

atio

n








23

Rev

italis

e ex

plor

atio

n

11

14 11

090904

23

20

17 13

11

04 05

03Reserves




NNS

35




4716

14

08 WoS

17

25

Rockall Trough










No Exploration

Wells



$boe


2014 13 69 9 83

2015 15 53 5 115

2016 11 45 5 64

2017 15 47 35 131

2018 7 43 1 175

24

Impr

ove

asse

t ste

war

dshi




LEADS

PLAY

PROSPECT

POTENTIALIN

FIELD

SANC

TIO

NED

DEVE

LOPM

ENTS

DEVELOPMENT

UNDER

PRODUCING

OPTIMISATION

DEVELOPMENTS

DISCOVERIES

(Mean unrisked)

CONTINGENT

RESOURCES

PROSPECTIVE

RESO

URCES

(2C)

RESERVES (2P)

PRODUCTION

All UKCS Operators





reductionResource

Progression

Senior Leadership

Tier ZeroTier One

Tier Two





Net

uni

t ope

ratin

g co

st (pound

boe

)

Operators


35

30

25

20

15

10

5

0






25




Field quality index

Rec

over

y fa

ctor

Operator X

Operator X

2017

Res

erve

s R

epla

cem

ent

Operator X

Operator X


Operator X

Expl

orat

ion

KPI s

core

Operator Xpoundboe

0 5 10 15 20 25 30

Operator X

Acquisition

Processing0102030405060708090100

0102030405060708090100

Operator X

Operator X

Operator X

Impr

ove

asse

t ste

war

dshi

p

Operator X

2626 26

Wells


Leve

rage

tech

nolo

gy a

nd d

ata


The Story so far



Delivering

44 billion barrels



19 EampA Wells

56 Development

wells

2128 Wells in

operation







but

Well abandonment








44






SCAPs




OGA Supporting





Project Pathfinder

Online project data



2015pound35bn

2016pound30bn

2017pound27bn

85

60

80




Cre

ate

the

right

con

ditio

ns

28

Area plans


Driv

e re

gion

al d

evel

opm

ent


East of Shetland

Quad 9 Gas

Outer Moray Firth



East Irish Sea

Tight Gas



Penguins











29




WOS

NNS

MFB

CNS

SNS

EIS






EIS East Irish Sea


1

2

3

Tech

nica

lly R

ecov

erab

le (b

nboe

)

Licensed

Unlicensed

30thRound

01

1

10

100

Licensed Unlicensed


Tech

nica

lly

reco

vera

ble

(mm

boe)

Technology











Clustering



Source OGA data

Driv

e re

gion

al d

evel

opm

ent

30 30



Leverage technology

OGA role






Priorities







Supply Chain

Research Academia





June 2017

33

22

107

16

21

8

5

18

No Submission

No plan

Limited plan

Good summary

plan

Comprehensive plan

No plan

Limited plan

Good summary

plan

Comprehensive plan










Leve

rage

tech

nolo

gy a

nd d

ata

31


Inspection drones

Thermite PampA


Low Capex Low Opex



Unmanned buoys




Plug-n-play

Re-usable

Composite spoolable













Leve

rage

tech

nolo

gy a

nd d

ata

3232




Leve

rage

tech

nolo

gy a

nd d

ata



2998 pipelines






Seismic

2D

Other

3D

3D642

104

4252

4998surveys

Other

2D

Infrastructure








8000 offshore wells


Wells


3333

OGA Data Centre







57k+users




Leve

rage

tech

nolo

gy a

nd d

ata

34

2017Established

Cost baseline






gt35 cost reduction

target


report


pound597bnpound58bn

pound557bn







case studies



Report

Project management

Warm Phase2 | Cold



Operating1 |


Well Abandonment



Topsidesremoval




preparation

PlanningScope

Execution












Planning Scope

Impr

ove

deco

mm

issi

onin

g effi

cien

cy

35

Impr

ove

deco

mm

issi

onin

g effi

cien

cy










Well abandonment


Structural removals



36


Onshore Licences












Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




5Improve





End 2021



38








Exploration










Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

gy

bull Thermite PampA




Wel






Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






21

Measuring success




DAYS









852


10661918

Production volume

Technologies





Influence

Promote

Regulate


Actual poundM 308


22

Key


4

444

4444

44 44

4

4

44444

44

444444

444444

44 4

44

4444

4444444444444 44

44




4

4

4

4

4

4

4

4

Greater Buchan Area


2019 2020 2021

31st

supplementary Q1

32nd

33rd


Mature Areas

Frontier Areas

Round opens

Round closes

Licence awards


Rev

italis

e ex

plor

atio

n








23

Rev

italis

e ex

plor

atio

n

11

14 11

090904

23

20

17 13

11

04 05

03Reserves




NNS

35




4716

14

08 WoS

17

25

Rockall Trough










No Exploration

Wells



$boe


2014 13 69 9 83

2015 15 53 5 115

2016 11 45 5 64

2017 15 47 35 131

2018 7 43 1 175

24

Impr

ove

asse

t ste

war

dshi




LEADS

PLAY

PROSPECT

POTENTIALIN

FIELD

SANC

TIO

NED

DEVE

LOPM

ENTS

DEVELOPMENT

UNDER

PRODUCING

OPTIMISATION

DEVELOPMENTS

DISCOVERIES

(Mean unrisked)

CONTINGENT

RESOURCES

PROSPECTIVE

RESO

URCES

(2C)

RESERVES (2P)

PRODUCTION

All UKCS Operators





reductionResource

Progression

Senior Leadership

Tier ZeroTier One

Tier Two





Net

uni

t ope

ratin

g co

st (pound

boe

)

Operators


35

30

25

20

15

10

5

0






25




Field quality index

Rec

over

y fa

ctor

Operator X

Operator X

2017

Res

erve

s R

epla

cem

ent

Operator X

Operator X


Operator X

Expl

orat

ion

KPI s

core

Operator Xpoundboe

0 5 10 15 20 25 30

Operator X

Acquisition

Processing0102030405060708090100

0102030405060708090100

Operator X

Operator X

Operator X

Impr

ove

asse

t ste

war

dshi

p

Operator X

2626 26

Wells


Leve

rage

tech

nolo

gy a

nd d

ata


The Story so far



Delivering

44 billion barrels



19 EampA Wells

56 Development

wells

2128 Wells in

operation







but

Well abandonment








44






SCAPs




OGA Supporting





Project Pathfinder

Online project data



2015pound35bn

2016pound30bn

2017pound27bn

85

60

80




Cre

ate

the

right

con

ditio

ns

28

Area plans


Driv

e re

gion

al d

evel

opm

ent


East of Shetland

Quad 9 Gas

Outer Moray Firth



East Irish Sea

Tight Gas



Penguins











29




WOS

NNS

MFB

CNS

SNS

EIS






EIS East Irish Sea


1

2

3

Tech

nica

lly R

ecov

erab

le (b

nboe

)

Licensed

Unlicensed

30thRound

01

1

10

100

Licensed Unlicensed


Tech

nica

lly

reco

vera

ble

(mm

boe)

Technology











Clustering



Source OGA data

Driv

e re

gion

al d

evel

opm

ent

30 30



Leverage technology

OGA role






Priorities







Supply Chain

Research Academia





June 2017

33

22

107

16

21

8

5

18

No Submission

No plan

Limited plan

Good summary

plan

Comprehensive plan

No plan

Limited plan

Good summary

plan

Comprehensive plan










Leve

rage

tech

nolo

gy a

nd d

ata

31


Inspection drones

Thermite PampA


Low Capex Low Opex



Unmanned buoys




Plug-n-play

Re-usable

Composite spoolable













Leve

rage

tech

nolo

gy a

nd d

ata

3232




Leve

rage

tech

nolo

gy a

nd d

ata



2998 pipelines






Seismic

2D

Other

3D

3D642

104

4252

4998surveys

Other

2D

Infrastructure








8000 offshore wells


Wells


3333

OGA Data Centre







57k+users




Leve

rage

tech

nolo

gy a

nd d

ata

34

2017Established

Cost baseline






gt35 cost reduction

target


report


pound597bnpound58bn

pound557bn







case studies



Report

Project management

Warm Phase2 | Cold



Operating1 |


Well Abandonment



Topsidesremoval




preparation

PlanningScope

Execution












Planning Scope

Impr

ove

deco

mm

issi

onin

g effi

cien

cy

35

Impr

ove

deco

mm

issi

onin

g effi

cien

cy










Well abandonment


Structural removals



36


Onshore Licences












Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




5Improve





End 2021



38








Exploration










Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

gy

bull Thermite PampA




Wel






Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






22

Key


4

444

4444

44 44

4

4

44444

44

444444

444444

44 4

44

4444

4444444444444 44

44




4

4

4

4

4

4

4

4

Greater Buchan Area


2019 2020 2021

31st

supplementary Q1

32nd

33rd


Mature Areas

Frontier Areas

Round opens

Round closes

Licence awards


Rev

italis

e ex

plor

atio

n








23

Rev

italis

e ex

plor

atio

n

11

14 11

090904

23

20

17 13

11

04 05

03Reserves




NNS

35




4716

14

08 WoS

17

25

Rockall Trough










No Exploration

Wells



$boe


2014 13 69 9 83

2015 15 53 5 115

2016 11 45 5 64

2017 15 47 35 131

2018 7 43 1 175

24

Impr

ove

asse

t ste

war

dshi




LEADS

PLAY

PROSPECT

POTENTIALIN

FIELD

SANC

TIO

NED

DEVE

LOPM

ENTS

DEVELOPMENT

UNDER

PRODUCING

OPTIMISATION

DEVELOPMENTS

DISCOVERIES

(Mean unrisked)

CONTINGENT

RESOURCES

PROSPECTIVE

RESO

URCES

(2C)

RESERVES (2P)

PRODUCTION

All UKCS Operators





reductionResource

Progression

Senior Leadership

Tier ZeroTier One

Tier Two





Net

uni

t ope

ratin

g co

st (pound

boe

)

Operators


35

30

25

20

15

10

5

0






25




Field quality index

Rec

over

y fa

ctor

Operator X

Operator X

2017

Res

erve

s R

epla

cem

ent

Operator X

Operator X


Operator X

Expl

orat

ion

KPI s

core

Operator Xpoundboe

0 5 10 15 20 25 30

Operator X

Acquisition

Processing0102030405060708090100

0102030405060708090100

Operator X

Operator X

Operator X

Impr

ove

asse

t ste

war

dshi

p

Operator X

2626 26

Wells


Leve

rage

tech

nolo

gy a

nd d

ata


The Story so far



Delivering

44 billion barrels



19 EampA Wells

56 Development

wells

2128 Wells in

operation







but

Well abandonment








44






SCAPs




OGA Supporting





Project Pathfinder

Online project data



2015pound35bn

2016pound30bn

2017pound27bn

85

60

80




Cre

ate

the

right

con

ditio

ns

28

Area plans


Driv

e re

gion

al d

evel

opm

ent


East of Shetland

Quad 9 Gas

Outer Moray Firth



East Irish Sea

Tight Gas



Penguins











29




WOS

NNS

MFB

CNS

SNS

EIS






EIS East Irish Sea


1

2

3

Tech

nica

lly R

ecov

erab

le (b

nboe

)

Licensed

Unlicensed

30thRound

01

1

10

100

Licensed Unlicensed


Tech

nica

lly

reco

vera

ble

(mm

boe)

Technology











Clustering



Source OGA data

Driv

e re

gion

al d

evel

opm

ent

30 30



Leverage technology

OGA role






Priorities







Supply Chain

Research Academia





June 2017

33

22

107

16

21

8

5

18

No Submission

No plan

Limited plan

Good summary

plan

Comprehensive plan

No plan

Limited plan

Good summary

plan

Comprehensive plan










Leve

rage

tech

nolo

gy a

nd d

ata

31


Inspection drones

Thermite PampA


Low Capex Low Opex



Unmanned buoys




Plug-n-play

Re-usable

Composite spoolable













Leve

rage

tech

nolo

gy a

nd d

ata

3232




Leve

rage

tech

nolo

gy a

nd d

ata



2998 pipelines






Seismic

2D

Other

3D

3D642

104

4252

4998surveys

Other

2D

Infrastructure








8000 offshore wells


Wells


3333

OGA Data Centre







57k+users




Leve

rage

tech

nolo

gy a

nd d

ata

34

2017Established

Cost baseline






gt35 cost reduction

target


report


pound597bnpound58bn

pound557bn







case studies



Report

Project management

Warm Phase2 | Cold



Operating1 |


Well Abandonment



Topsidesremoval




preparation

PlanningScope

Execution












Planning Scope

Impr

ove

deco

mm

issi

onin

g effi

cien

cy

35

Impr

ove

deco

mm

issi

onin

g effi

cien

cy










Well abandonment


Structural removals



36


Onshore Licences












Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




5Improve





End 2021



38








Exploration










Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

gy

bull Thermite PampA




Wel






Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






23

Rev

italis

e ex

plor

atio

n

11

14 11

090904

23

20

17 13

11

04 05

03Reserves




NNS

35




4716

14

08 WoS

17

25

Rockall Trough










No Exploration

Wells



$boe


2014 13 69 9 83

2015 15 53 5 115

2016 11 45 5 64

2017 15 47 35 131

2018 7 43 1 175

24

Impr

ove

asse

t ste

war

dshi




LEADS

PLAY

PROSPECT

POTENTIALIN

FIELD

SANC

TIO

NED

DEVE

LOPM

ENTS

DEVELOPMENT

UNDER

PRODUCING

OPTIMISATION

DEVELOPMENTS

DISCOVERIES

(Mean unrisked)

CONTINGENT

RESOURCES

PROSPECTIVE

RESO

URCES

(2C)

RESERVES (2P)

PRODUCTION

All UKCS Operators





reductionResource

Progression

Senior Leadership

Tier ZeroTier One

Tier Two





Net

uni

t ope

ratin

g co

st (pound

boe

)

Operators


35

30

25

20

15

10

5

0






25




Field quality index

Rec

over

y fa

ctor

Operator X

Operator X

2017

Res

erve

s R

epla

cem

ent

Operator X

Operator X


Operator X

Expl

orat

ion

KPI s

core

Operator Xpoundboe

0 5 10 15 20 25 30

Operator X

Acquisition

Processing0102030405060708090100

0102030405060708090100

Operator X

Operator X

Operator X

Impr

ove

asse

t ste

war

dshi

p

Operator X

2626 26

Wells


Leve

rage

tech

nolo

gy a

nd d

ata


The Story so far



Delivering

44 billion barrels



19 EampA Wells

56 Development

wells

2128 Wells in

operation







but

Well abandonment








44






SCAPs




OGA Supporting





Project Pathfinder

Online project data



2015pound35bn

2016pound30bn

2017pound27bn

85

60

80




Cre

ate

the

right

con

ditio

ns

28

Area plans


Driv

e re

gion

al d

evel

opm

ent


East of Shetland

Quad 9 Gas

Outer Moray Firth



East Irish Sea

Tight Gas



Penguins











29




WOS

NNS

MFB

CNS

SNS

EIS






EIS East Irish Sea


1

2

3

Tech

nica

lly R

ecov

erab

le (b

nboe

)

Licensed

Unlicensed

30thRound

01

1

10

100

Licensed Unlicensed


Tech

nica

lly

reco

vera

ble

(mm

boe)

Technology











Clustering



Source OGA data

Driv

e re

gion

al d

evel

opm

ent

30 30



Leverage technology

OGA role






Priorities







Supply Chain

Research Academia





June 2017

33

22

107

16

21

8

5

18

No Submission

No plan

Limited plan

Good summary

plan

Comprehensive plan

No plan

Limited plan

Good summary

plan

Comprehensive plan










Leve

rage

tech

nolo

gy a

nd d

ata

31


Inspection drones

Thermite PampA


Low Capex Low Opex



Unmanned buoys




Plug-n-play

Re-usable

Composite spoolable













Leve

rage

tech

nolo

gy a

nd d

ata

3232




Leve

rage

tech

nolo

gy a

nd d

ata



2998 pipelines






Seismic

2D

Other

3D

3D642

104

4252

4998surveys

Other

2D

Infrastructure








8000 offshore wells


Wells


3333

OGA Data Centre







57k+users




Leve

rage

tech

nolo

gy a

nd d

ata

34

2017Established

Cost baseline






gt35 cost reduction

target


report


pound597bnpound58bn

pound557bn







case studies



Report

Project management

Warm Phase2 | Cold



Operating1 |


Well Abandonment



Topsidesremoval




preparation

PlanningScope

Execution












Planning Scope

Impr

ove

deco

mm

issi

onin

g effi

cien

cy

35

Impr

ove

deco

mm

issi

onin

g effi

cien

cy










Well abandonment


Structural removals



36


Onshore Licences












Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




5Improve





End 2021



38








Exploration










Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

gy

bull Thermite PampA




Wel






Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






24

Impr

ove

asse

t ste

war

dshi




LEADS

PLAY

PROSPECT

POTENTIALIN

FIELD

SANC

TIO

NED

DEVE

LOPM

ENTS

DEVELOPMENT

UNDER

PRODUCING

OPTIMISATION

DEVELOPMENTS

DISCOVERIES

(Mean unrisked)

CONTINGENT

RESOURCES

PROSPECTIVE

RESO

URCES

(2C)

RESERVES (2P)

PRODUCTION

All UKCS Operators





reductionResource

Progression

Senior Leadership

Tier ZeroTier One

Tier Two





Net

uni

t ope

ratin

g co

st (pound

boe

)

Operators


35

30

25

20

15

10

5

0






25




Field quality index

Rec

over

y fa

ctor

Operator X

Operator X

2017

Res

erve

s R

epla

cem

ent

Operator X

Operator X


Operator X

Expl

orat

ion

KPI s

core

Operator Xpoundboe

0 5 10 15 20 25 30

Operator X

Acquisition

Processing0102030405060708090100

0102030405060708090100

Operator X

Operator X

Operator X

Impr

ove

asse

t ste

war

dshi

p

Operator X

2626 26

Wells


Leve

rage

tech

nolo

gy a

nd d

ata


The Story so far



Delivering

44 billion barrels



19 EampA Wells

56 Development

wells

2128 Wells in

operation







but

Well abandonment








44






SCAPs




OGA Supporting





Project Pathfinder

Online project data



2015pound35bn

2016pound30bn

2017pound27bn

85

60

80




Cre

ate

the

right

con

ditio

ns

28

Area plans


Driv

e re

gion

al d

evel

opm

ent


East of Shetland

Quad 9 Gas

Outer Moray Firth



East Irish Sea

Tight Gas



Penguins











29




WOS

NNS

MFB

CNS

SNS

EIS






EIS East Irish Sea


1

2

3

Tech

nica

lly R

ecov

erab

le (b

nboe

)

Licensed

Unlicensed

30thRound

01

1

10

100

Licensed Unlicensed


Tech

nica

lly

reco

vera

ble

(mm

boe)

Technology











Clustering



Source OGA data

Driv

e re

gion

al d

evel

opm

ent

30 30



Leverage technology

OGA role






Priorities







Supply Chain

Research Academia





June 2017

33

22

107

16

21

8

5

18

No Submission

No plan

Limited plan

Good summary

plan

Comprehensive plan

No plan

Limited plan

Good summary

plan

Comprehensive plan










Leve

rage

tech

nolo

gy a

nd d

ata

31


Inspection drones

Thermite PampA


Low Capex Low Opex



Unmanned buoys




Plug-n-play

Re-usable

Composite spoolable













Leve

rage

tech

nolo

gy a

nd d

ata

3232




Leve

rage

tech

nolo

gy a

nd d

ata



2998 pipelines






Seismic

2D

Other

3D

3D642

104

4252

4998surveys

Other

2D

Infrastructure








8000 offshore wells


Wells


3333

OGA Data Centre







57k+users




Leve

rage

tech

nolo

gy a

nd d

ata

34

2017Established

Cost baseline






gt35 cost reduction

target


report


pound597bnpound58bn

pound557bn







case studies



Report

Project management

Warm Phase2 | Cold



Operating1 |


Well Abandonment



Topsidesremoval




preparation

PlanningScope

Execution












Planning Scope

Impr

ove

deco

mm

issi

onin

g effi

cien

cy

35

Impr

ove

deco

mm

issi

onin

g effi

cien

cy










Well abandonment


Structural removals



36


Onshore Licences












Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




5Improve





End 2021



38








Exploration










Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

gy

bull Thermite PampA




Wel






Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






25




Field quality index

Rec

over

y fa

ctor

Operator X

Operator X

2017

Res

erve

s R

epla

cem

ent

Operator X

Operator X


Operator X

Expl

orat

ion

KPI s

core

Operator Xpoundboe

0 5 10 15 20 25 30

Operator X

Acquisition

Processing0102030405060708090100

0102030405060708090100

Operator X

Operator X

Operator X

Impr

ove

asse

t ste

war

dshi

p

Operator X

2626 26

Wells


Leve

rage

tech

nolo

gy a

nd d

ata


The Story so far



Delivering

44 billion barrels



19 EampA Wells

56 Development

wells

2128 Wells in

operation







but

Well abandonment








44






SCAPs




OGA Supporting





Project Pathfinder

Online project data



2015pound35bn

2016pound30bn

2017pound27bn

85

60

80




Cre

ate

the

right

con

ditio

ns

28

Area plans


Driv

e re

gion

al d

evel

opm

ent


East of Shetland

Quad 9 Gas

Outer Moray Firth



East Irish Sea

Tight Gas



Penguins











29




WOS

NNS

MFB

CNS

SNS

EIS






EIS East Irish Sea


1

2

3

Tech

nica

lly R

ecov

erab

le (b

nboe

)

Licensed

Unlicensed

30thRound

01

1

10

100

Licensed Unlicensed


Tech

nica

lly

reco

vera

ble

(mm

boe)

Technology











Clustering



Source OGA data

Driv

e re

gion

al d

evel

opm

ent

30 30



Leverage technology

OGA role






Priorities







Supply Chain

Research Academia





June 2017

33

22

107

16

21

8

5

18

No Submission

No plan

Limited plan

Good summary

plan

Comprehensive plan

No plan

Limited plan

Good summary

plan

Comprehensive plan










Leve

rage

tech

nolo

gy a

nd d

ata

31


Inspection drones

Thermite PampA


Low Capex Low Opex



Unmanned buoys




Plug-n-play

Re-usable

Composite spoolable













Leve

rage

tech

nolo

gy a

nd d

ata

3232




Leve

rage

tech

nolo

gy a

nd d

ata



2998 pipelines






Seismic

2D

Other

3D

3D642

104

4252

4998surveys

Other

2D

Infrastructure








8000 offshore wells


Wells


3333

OGA Data Centre







57k+users




Leve

rage

tech

nolo

gy a

nd d

ata

34

2017Established

Cost baseline






gt35 cost reduction

target


report


pound597bnpound58bn

pound557bn







case studies



Report

Project management

Warm Phase2 | Cold



Operating1 |


Well Abandonment



Topsidesremoval




preparation

PlanningScope

Execution












Planning Scope

Impr

ove

deco

mm

issi

onin

g effi

cien

cy

35

Impr

ove

deco

mm

issi

onin

g effi

cien

cy










Well abandonment


Structural removals



36


Onshore Licences












Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




5Improve





End 2021



38








Exploration










Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

gy

bull Thermite PampA




Wel






Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






2626 26

Wells


Leve

rage

tech

nolo

gy a

nd d

ata


The Story so far



Delivering

44 billion barrels



19 EampA Wells

56 Development

wells

2128 Wells in

operation







but

Well abandonment








44






SCAPs




OGA Supporting





Project Pathfinder

Online project data



2015pound35bn

2016pound30bn

2017pound27bn

85

60

80




Cre

ate

the

right

con

ditio

ns

28

Area plans


Driv

e re

gion

al d

evel

opm

ent


East of Shetland

Quad 9 Gas

Outer Moray Firth



East Irish Sea

Tight Gas



Penguins











29




WOS

NNS

MFB

CNS

SNS

EIS






EIS East Irish Sea


1

2

3

Tech

nica

lly R

ecov

erab

le (b

nboe

)

Licensed

Unlicensed

30thRound

01

1

10

100

Licensed Unlicensed


Tech

nica

lly

reco

vera

ble

(mm

boe)

Technology











Clustering



Source OGA data

Driv

e re

gion

al d

evel

opm

ent

30 30



Leverage technology

OGA role






Priorities







Supply Chain

Research Academia





June 2017

33

22

107

16

21

8

5

18

No Submission

No plan

Limited plan

Good summary

plan

Comprehensive plan

No plan

Limited plan

Good summary

plan

Comprehensive plan










Leve

rage

tech

nolo

gy a

nd d

ata

31


Inspection drones

Thermite PampA


Low Capex Low Opex



Unmanned buoys




Plug-n-play

Re-usable

Composite spoolable













Leve

rage

tech

nolo

gy a

nd d

ata

3232




Leve

rage

tech

nolo

gy a

nd d

ata



2998 pipelines






Seismic

2D

Other

3D

3D642

104

4252

4998surveys

Other

2D

Infrastructure








8000 offshore wells


Wells


3333

OGA Data Centre







57k+users




Leve

rage

tech

nolo

gy a

nd d

ata

34

2017Established

Cost baseline






gt35 cost reduction

target


report


pound597bnpound58bn

pound557bn







case studies



Report

Project management

Warm Phase2 | Cold



Operating1 |


Well Abandonment



Topsidesremoval




preparation

PlanningScope

Execution












Planning Scope

Impr

ove

deco

mm

issi

onin

g effi

cien

cy

35

Impr

ove

deco

mm

issi

onin

g effi

cien

cy










Well abandonment


Structural removals



36


Onshore Licences












Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




5Improve





End 2021



38








Exploration










Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

gy

bull Thermite PampA




Wel






Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk











SCAPs




OGA Supporting





Project Pathfinder

Online project data



2015pound35bn

2016pound30bn

2017pound27bn

85

60

80




Cre

ate

the

right

con

ditio

ns

28

Area plans


Driv

e re

gion

al d

evel

opm

ent


East of Shetland

Quad 9 Gas

Outer Moray Firth



East Irish Sea

Tight Gas



Penguins











29




WOS

NNS

MFB

CNS

SNS

EIS






EIS East Irish Sea


1

2

3

Tech

nica

lly R

ecov

erab

le (b

nboe

)

Licensed

Unlicensed

30thRound

01

1

10

100

Licensed Unlicensed


Tech

nica

lly

reco

vera

ble

(mm

boe)

Technology











Clustering



Source OGA data

Driv

e re

gion

al d

evel

opm

ent

30 30



Leverage technology

OGA role






Priorities







Supply Chain

Research Academia





June 2017

33

22

107

16

21

8

5

18

No Submission

No plan

Limited plan

Good summary

plan

Comprehensive plan

No plan

Limited plan

Good summary

plan

Comprehensive plan










Leve

rage

tech

nolo

gy a

nd d

ata

31


Inspection drones

Thermite PampA


Low Capex Low Opex



Unmanned buoys




Plug-n-play

Re-usable

Composite spoolable













Leve

rage

tech

nolo

gy a

nd d

ata

3232




Leve

rage

tech

nolo

gy a

nd d

ata



2998 pipelines






Seismic

2D

Other

3D

3D642

104

4252

4998surveys

Other

2D

Infrastructure








8000 offshore wells


Wells


3333

OGA Data Centre







57k+users




Leve

rage

tech

nolo

gy a

nd d

ata

34

2017Established

Cost baseline






gt35 cost reduction

target


report


pound597bnpound58bn

pound557bn







case studies



Report

Project management

Warm Phase2 | Cold



Operating1 |


Well Abandonment



Topsidesremoval




preparation

PlanningScope

Execution












Planning Scope

Impr

ove

deco

mm

issi

onin

g effi

cien

cy

35

Impr

ove

deco

mm

issi

onin

g effi

cien

cy










Well abandonment


Structural removals



36


Onshore Licences












Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




5Improve





End 2021



38








Exploration










Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

gy

bull Thermite PampA




Wel






Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






28

Area plans


Driv

e re

gion

al d

evel

opm

ent


East of Shetland

Quad 9 Gas

Outer Moray Firth



East Irish Sea

Tight Gas



Penguins











29




WOS

NNS

MFB

CNS

SNS

EIS






EIS East Irish Sea


1

2

3

Tech

nica

lly R

ecov

erab

le (b

nboe

)

Licensed

Unlicensed

30thRound

01

1

10

100

Licensed Unlicensed


Tech

nica

lly

reco

vera

ble

(mm

boe)

Technology











Clustering



Source OGA data

Driv

e re

gion

al d

evel

opm

ent

30 30



Leverage technology

OGA role






Priorities







Supply Chain

Research Academia





June 2017

33

22

107

16

21

8

5

18

No Submission

No plan

Limited plan

Good summary

plan

Comprehensive plan

No plan

Limited plan

Good summary

plan

Comprehensive plan










Leve

rage

tech

nolo

gy a

nd d

ata

31


Inspection drones

Thermite PampA


Low Capex Low Opex



Unmanned buoys




Plug-n-play

Re-usable

Composite spoolable













Leve

rage

tech

nolo

gy a

nd d

ata

3232




Leve

rage

tech

nolo

gy a

nd d

ata



2998 pipelines






Seismic

2D

Other

3D

3D642

104

4252

4998surveys

Other

2D

Infrastructure








8000 offshore wells


Wells


3333

OGA Data Centre







57k+users




Leve

rage

tech

nolo

gy a

nd d

ata

34

2017Established

Cost baseline






gt35 cost reduction

target


report


pound597bnpound58bn

pound557bn







case studies



Report

Project management

Warm Phase2 | Cold



Operating1 |


Well Abandonment



Topsidesremoval




preparation

PlanningScope

Execution












Planning Scope

Impr

ove

deco

mm

issi

onin

g effi

cien

cy

35

Impr

ove

deco

mm

issi

onin

g effi

cien

cy










Well abandonment


Structural removals



36


Onshore Licences












Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




5Improve





End 2021



38








Exploration










Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

gy

bull Thermite PampA




Wel






Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






29




WOS

NNS

MFB

CNS

SNS

EIS






EIS East Irish Sea


1

2

3

Tech

nica

lly R

ecov

erab

le (b

nboe

)

Licensed

Unlicensed

30thRound

01

1

10

100

Licensed Unlicensed


Tech

nica

lly

reco

vera

ble

(mm

boe)

Technology











Clustering



Source OGA data

Driv

e re

gion

al d

evel

opm

ent

30 30



Leverage technology

OGA role






Priorities







Supply Chain

Research Academia





June 2017

33

22

107

16

21

8

5

18

No Submission

No plan

Limited plan

Good summary

plan

Comprehensive plan

No plan

Limited plan

Good summary

plan

Comprehensive plan










Leve

rage

tech

nolo

gy a

nd d

ata

31


Inspection drones

Thermite PampA


Low Capex Low Opex



Unmanned buoys




Plug-n-play

Re-usable

Composite spoolable













Leve

rage

tech

nolo

gy a

nd d

ata

3232




Leve

rage

tech

nolo

gy a

nd d

ata



2998 pipelines






Seismic

2D

Other

3D

3D642

104

4252

4998surveys

Other

2D

Infrastructure








8000 offshore wells


Wells


3333

OGA Data Centre







57k+users




Leve

rage

tech

nolo

gy a

nd d

ata

34

2017Established

Cost baseline






gt35 cost reduction

target


report


pound597bnpound58bn

pound557bn







case studies



Report

Project management

Warm Phase2 | Cold



Operating1 |


Well Abandonment



Topsidesremoval




preparation

PlanningScope

Execution












Planning Scope

Impr

ove

deco

mm

issi

onin

g effi

cien

cy

35

Impr

ove

deco

mm

issi

onin

g effi

cien

cy










Well abandonment


Structural removals



36


Onshore Licences












Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




5Improve





End 2021



38








Exploration










Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

gy

bull Thermite PampA




Wel






Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






30 30



Leverage technology

OGA role






Priorities







Supply Chain

Research Academia





June 2017

33

22

107

16

21

8

5

18

No Submission

No plan

Limited plan

Good summary

plan

Comprehensive plan

No plan

Limited plan

Good summary

plan

Comprehensive plan










Leve

rage

tech

nolo

gy a

nd d

ata

31


Inspection drones

Thermite PampA


Low Capex Low Opex



Unmanned buoys




Plug-n-play

Re-usable

Composite spoolable













Leve

rage

tech

nolo

gy a

nd d

ata

3232




Leve

rage

tech

nolo

gy a

nd d

ata



2998 pipelines






Seismic

2D

Other

3D

3D642

104

4252

4998surveys

Other

2D

Infrastructure








8000 offshore wells


Wells


3333

OGA Data Centre







57k+users




Leve

rage

tech

nolo

gy a

nd d

ata

34

2017Established

Cost baseline






gt35 cost reduction

target


report


pound597bnpound58bn

pound557bn







case studies



Report

Project management

Warm Phase2 | Cold



Operating1 |


Well Abandonment



Topsidesremoval




preparation

PlanningScope

Execution












Planning Scope

Impr

ove

deco

mm

issi

onin

g effi

cien

cy

35

Impr

ove

deco

mm

issi

onin

g effi

cien

cy










Well abandonment


Structural removals



36


Onshore Licences












Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




5Improve





End 2021



38








Exploration










Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

gy

bull Thermite PampA




Wel






Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






31


Inspection drones

Thermite PampA


Low Capex Low Opex



Unmanned buoys




Plug-n-play

Re-usable

Composite spoolable













Leve

rage

tech

nolo

gy a

nd d

ata

3232




Leve

rage

tech

nolo

gy a

nd d

ata



2998 pipelines






Seismic

2D

Other

3D

3D642

104

4252

4998surveys

Other

2D

Infrastructure








8000 offshore wells


Wells


3333

OGA Data Centre







57k+users




Leve

rage

tech

nolo

gy a

nd d

ata

34

2017Established

Cost baseline






gt35 cost reduction

target


report


pound597bnpound58bn

pound557bn







case studies



Report

Project management

Warm Phase2 | Cold



Operating1 |


Well Abandonment



Topsidesremoval




preparation

PlanningScope

Execution












Planning Scope

Impr

ove

deco

mm

issi

onin

g effi

cien

cy

35

Impr

ove

deco

mm

issi

onin

g effi

cien

cy










Well abandonment


Structural removals



36


Onshore Licences












Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




5Improve





End 2021



38








Exploration










Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

gy

bull Thermite PampA




Wel






Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






3232




Leve

rage

tech

nolo

gy a

nd d

ata



2998 pipelines






Seismic

2D

Other

3D

3D642

104

4252

4998surveys

Other

2D

Infrastructure








8000 offshore wells


Wells


3333

OGA Data Centre







57k+users




Leve

rage

tech

nolo

gy a

nd d

ata

34

2017Established

Cost baseline






gt35 cost reduction

target


report


pound597bnpound58bn

pound557bn







case studies



Report

Project management

Warm Phase2 | Cold



Operating1 |


Well Abandonment



Topsidesremoval




preparation

PlanningScope

Execution












Planning Scope

Impr

ove

deco

mm

issi

onin

g effi

cien

cy

35

Impr

ove

deco

mm

issi

onin

g effi

cien

cy










Well abandonment


Structural removals



36


Onshore Licences












Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




5Improve





End 2021



38








Exploration










Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

gy

bull Thermite PampA




Wel






Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






3333

OGA Data Centre







57k+users




Leve

rage

tech

nolo

gy a

nd d

ata

34

2017Established

Cost baseline






gt35 cost reduction

target


report


pound597bnpound58bn

pound557bn







case studies



Report

Project management

Warm Phase2 | Cold



Operating1 |


Well Abandonment



Topsidesremoval




preparation

PlanningScope

Execution












Planning Scope

Impr

ove

deco

mm

issi

onin

g effi

cien

cy

35

Impr

ove

deco

mm

issi

onin

g effi

cien

cy










Well abandonment


Structural removals



36


Onshore Licences












Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




5Improve





End 2021



38








Exploration










Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

gy

bull Thermite PampA




Wel






Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






34

2017Established

Cost baseline






gt35 cost reduction

target


report


pound597bnpound58bn

pound557bn







case studies



Report

Project management

Warm Phase2 | Cold



Operating1 |


Well Abandonment



Topsidesremoval




preparation

PlanningScope

Execution












Planning Scope

Impr

ove

deco

mm

issi

onin

g effi

cien

cy

35

Impr

ove

deco

mm

issi

onin

g effi

cien

cy










Well abandonment


Structural removals



36


Onshore Licences












Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




5Improve





End 2021



38








Exploration










Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

gy

bull Thermite PampA




Wel






Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






35

Impr

ove

deco

mm

issi

onin

g effi

cien

cy










Well abandonment


Structural removals



36


Onshore Licences












Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




5Improve





End 2021



38








Exploration










Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

gy

bull Thermite PampA




Wel






Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






36


Onshore Licences












Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




5Improve





End 2021



38








Exploration










Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

gy

bull Thermite PampA




Wel






Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






37

The way forward

Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms





2Enhanced

asset stewardship




5Improve





End 2021



38








Exploration










Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

gy

bull Thermite PampA




Wel






Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






38








Exploration










Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

gy

bull Thermite PampA




Wel






Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






3939


Exp

lora

tion




Buzzard Phase II

Dev

elop

men

t





Tech

nolo

gy

bull Thermite PampA




Wel






Supp

ly C

hain



Dec

omm

issi

onin

g



Dev

elop

peo

ple

pro

cess

es a

nd s

yste

ms

40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






40


Gunther Newcombe


Hedvig Ljungerud


Stuart Payne


Nic Granger

Dr Andy Samuel

ChiefExecutive

Executive team

Chief Executive

Dr Andy Samuel


Robert Armour




Nic Granger

Tim Eggar

Chairman

Acco

unta

ble

to B

EIS

Secr

etar

y of

Sta

te


Mary Hardy





Tom Wheeler


evel

op p

eopl

e p

roce

sses

and

sys

tem

s


Director

Emily Bourne

4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






4141


OGA





Infrastructure OGA











Legislation BEIS



Fiscal and taxation





Key









42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






42





June 2017

Strategy





April 2017






June 2017

Guidance

March 2017

StewardshipReview




HC 1371

43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk






43







June 2017


June 2017








SanctionProcedure



SanctionProcedure




November 2016







June 2017


June 2017


September 2017




January 2018 Rev 10

December 2017



As at end 2016










SanctionProcedure






July 2018


FinancialGuidance










June 2017



June 2017


October 2018


wwwogauthoritycouk







wwwogauthoritycouk






Documents

OGA Overview 2019 - ogauthority.co.uk · 4.1 prospective resources in mapped prospects and leads 7.5 unsanctioned (5.4 from proposed new developments and other discoveries) 5.4 sanctioned