Healthy Prognosis for UKCS Heavy Oil - Report on Presentations at DEVEX 2006,

Aberdeen Exhibition and Conference Centre, 17th & 18th May 2006

Heavy oil is an important global resource and worldwide reserves may be comparable to those of conventional oil. In the UK, heavy oil is less significant, but could become more so over the next couple of decades.

A working definition for UKCS heavy oil is oil with API gravity < 22 degrees and reservoir viscosity > 5 cp. Hence the Clair field, with a nominal 23ºAPI oil and estimated STOIIP of 5 billion barrels, is excluded. On this basis, there is an estimated 2 billion barrels of heavy oil remaining in place in fields being developed, over 4 billion barrels in undeveloped discoveries and perhaps another 2-3 billion barrels ‘yet to find’.

Thus, although UKCS heavy oil production only currently amounts to 150,000 barrels per day, or 10% of total UK oil production, there is perhaps 10 billion barrels of heavy oil in place. Heavy oil reserves lie somewhere in the range 250 million barrels to over 1 billion barrels, so could represent around 5% of UK’s total oil and gas reserves. Heavy oil may form an increasing proportion of UK daily production as conventional oil and gas production declines.

There are significant technical challenges to developing heavy oil offshore. Nevertheless the UKCS is at the forefront with an increasing number of heavy oil fields having come on production since the early 1990s. DTI has helped raise interest though “Promote” heavy oil licences offered in 21st, 22nd and 23rd Offshore Licensing Rounds. A number of 21st Round heavy oil licences were retained in 2005 with the companies concerned having committed to appraisal well programmes. Other companies with traditional licences are also progressing pre-development studies and appraisal plans, while a separate onshore consortium has taken forward the business case for a UK heavy oil Upgrader. The DTI “Fallow Assets” process is also pressuring companies with heavy oil discoveries held under traditional licences to develop action plans or else move towards relinquishing the licences, if there is insufficient activity.

Thus, there is progress on all fronts and the prognosis for UKCS heavy oil is healthy. Technological developments could lead to a future scenario in which UKCS heavy oil production plays a more important role.

Colin Cranfield
DTI, ERDU-LED

Downloads

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