Merlin ERD commissioned to explore North Sea potential

Scotland-based global drilling experts, Merlin ERD, have been commissioned to lead a study into maximising the economic recovery of the North Sea oil industry.

The government has tasked Merlin ERD to explore the potential of untapped oil and gas reservoirs in UK waters. Experts claim that such a move could lead to the exploitation of tens of billions of pounds worth of latent resources.

Advanced technologies

Merlin ERD’s Iain Hutchison claims that advanced technologies can be used to capture millions of barrels of peripherally located oil only while existing infrastructure is in place. However, Hutchinson warns that if platforms become redundant and offline, a fortune in untapped fuel will be lost.

Hutchison, who has been involved in some of the longest, deepest and most demanding extended reach drilling in the world, points out that ERD technology could allow North Sea oilfields to extend their wells using existing platforms, rather than the prohibitive cost of dropping new wells. Timely intervention could also add decades to the energy producing life of the North Sea.

Ian Hutchinson.

Extraction challenge

He explained: “There is no shortage of oil in the North Sea and there never will. The challenge is extracting it profitably.

“The infrastructure already exists in the North Sea that would allow ERD to secure distant reservoirs with minimum effort. But the oil and gas sector has to take advantage of these opportunities today - tomorrow could be too late. Our offshore platforms have a finite life and the opportunity disappears with them.”

Wood Report

Merlin ERD recently received the Queen’s Award for Enterprise for International Trade. This latest study commission comes in the wake of the Wood Report which looked at maximising any economic recovery for a faltering North Sea oil and gas sector.

In his report, Sir Ian Wood pointed out that the UK’s oil and gas industry is of national importance, making a substantial contribution to our economy, energy security and employment.

Billions of barrels

Sir Ian Wood noted: “Forty-two billion barrels of oil and gas have already been produced from the UK Continental Shelf (UKCS), and 12 – 24 billion more could still be produced, so it is vital that we make the most of the huge opportunity that the UKCS continues to represent.

“While investment levels are rising and the near-term prospects for the UKCS are strong, as one of the most mature offshore basins in the world, it faces unprecedented challenges in a very different exploration and production environment compared to when production peaked 15 years ago.”

Government support

Hutchison’s call for immediate action in harnessing cutting edge technology attracted the attention of Scottish Energy Minister Fergus Ewing who has backed the need for a full study into the possibilities.

“Long distance drilling is carried out across the world but the North Sea has been slow to capitalise on the proven technology, and we have lost our technical advantage to innovators in the Norwegian, Dutch and Danish sectors of the North Sea. The Germans too are beating us in their world class wells,” said Hutchison.

“The days of easy access to our North Sea oil reservoirs are over but the oil supply is far from burned out and much of it is within reach of existing platforms and infrastructure.”

Productivity and profitability

The team of Merlin ERD experts, led by Hutchinson, will submit their report later this month. Hutchinson stresses it will not only explore potential, but also detail how employing ERD technology will extend productivity, increase profitability and sustain employability in the North Sea.

“Compiling a study that is so vital to our nation is a huge responsibility, but one that excites me - it is why we are in the business we are,” he concluded.

Adapted from press release by Katie Woodward

Read the article online at: https://www.oilfieldtechnology.com/exploration/18082014/merlin-erd-experts-to-explore-north-sea-potential-1295/