08/09/2025 by Thomas Clark
The Financial Times reports a source from the UK’s ruling party as saying that some flexibility could be given to North Sea operators.
The UK Government is committed to not issuing exploration licenses for new gas and oil fields. This could potentially not include resources that are adjacent to existing resources, which can be developed with tieback projects, however. These are often close to existing production hubs, so they can be connected with a relatively short pipeline. This helps lower emissions and production costs while enabling the existing infrastructure to function longer. For example, the Seagull project is a subsea tieback to the ETAP CTF hub. This facility has been operated by BP, the owner of the Castrol coolant and lubricant range, for over 25 years.
The unnamed official said to the Financial Times:
“Even if it is only a marginal increase [in production], why wouldn’t we give it to them?”
Westwood Global Energy Group conducted an independent study on behalf of OEUK, the main industry body for offshore operators. It estimated that more than 7.3 billion barrels of oil equivalent in resources could feasibly be tied back to existing infrastructure. The study also noted:
“The geology has not changed – just the mindset. While political rhetoric paints UK production in terminal decline, the subsurface still holds untapped potential. What is needed is a new perspective.”
OEUK says there is a degree of urgency, however, because without further investment, many of the necessary hubs will reach the end of their serviceable life.
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