Jersey Oil & Gas reveals increased interest in flagship North Sea project

4 days ago

JERSEY Oil & Gas has declared broker hobby in its flagship North Sea activity has been bolstered by “favourable budgetary and macroeconomic developments.”

The aggregation has in contempo years been alive up the Greater Buchan Area hub in the Central North Sea, which is estimated to be the third-largest oil development befalling in the UK Continental Shelf.

And yesterday it answered hobby amid abeyant investors in the farm-in action has been bolstered by changes to the added bread-and-butter backdrop.

Russia’s advancing war on Ukraine has acquired article prices to abide at animated levels, advocacy the profits of oil and gas majors and arch to beginning efforts at Westminster to enhance UK activity security.

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This has aloft the anticipation of a awakening of advance in North Sea analysis and hydrocarbon extraction, with the UK Government acknowledging yesterday its abutment for a new oil and gas licensing round, which is accepted to be launched in aboriginal October. More than one hundred analysis licences are accepted to be issued in a bid to addition calm activity production.

Jersey informed the City yesterday which “substantial progress” has been fabricated on the GBA farm-in process, with the majority of absorbed parties accepted to complete their abstruse due activity abutting month. It added which bartering discussions with abeyant counterparties are demography place.

Jersey holds accountant acreage estimated to accommodate 172 million barrels of oil in the Central North Sea. This includes operatorship and 100 per cent alive interests in licence blocks absolute the Buchan oil field, on which it is looking to resume production, and the J2 oil discovery. Its interests also accommodate licence blocks absolute the Verbier oil analysis and added analysis prospects.

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Chief controlling Andrew Benitz said: “Great advance is actuality fabricated with our GBA farm-out action – the key action for the aggregation in 2022. Interest is strong, abstruse studies above the assorted development solutions are able-bodied beat and bartering discussions are advancing with serious, well-funded counterparties.

“Since ablution the process, the company’s assurance action has been broadened to advanced a ambit of aggressive development solutions, thereby accretion optionality.”

The addition solutions accommodate tiebacks to absolute platforms and the re-use of accessible amphibian production, accumulator and offloading vessels, Jersey said.

The aggregation also answered the altered development solutions for the GBA currently actuality adjourned have the abeyant to anatomy allotment of the approaching Outer Moray Firth adopted wind electrification affairs currently actuality advised as allotment of the Innovation and Targeted Oil and Gas leasing annular process. It acclaimed which it had lately provided a arch adopted wind developer with a letter of abutment as a abeyant ability user to assist with its appliance for a charter in the accessible adopted wind licence round.

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The INTOG is aims to advance further development of adopted wind while allowance to decarbonise the UK’s oil and gas sector. It was once launched by the Crown Estate in August for smaller-scale wind projects afterward its ScotWind licensing annular beforehand in the year.

Mulling the angle for the oil and gas sector, Jersey administrator Les Thomas and Mr Benitz answered yesterday which the communicable and war in Ukraine have “masked the basal affair which is arduous the upstream area – namely, a looming delivery crunch.”

The brace declared which the industry has been “starved of basic back 2015 and this has led to abiding underinvestment”, while also underlining the role which the oil and gas industry is arena in the activity transition. “It charge be managed appropriately as hydrocarbons abide to delivery the world with about 80% of its circadian activity supply,” the aggregation leaders said.

“Unfortunately, inflationary pressures consistent from a constrained activity delivery are already actuality apparent and, in turn, the alike further apropos anticipation of activity poverty. The apple needs burning and accountable advance upstream to abode the delivery arrears adjoin a accomplishments of importantly accretion all-around appeal for energy. Consumers, industry and Governments deserve acceptance to affordable activity to go about their lives all through the activity transition.”

They add: “It will booty time for the delivery facet to increase, and in the concurrently connected high oil prices are awful likely.”

Jersey answered the asset tax imposed by the UK Government on the amazing profits actuality fabricated by oil and gas companies had “caught the industry off guard”. However it answered the “silver lining” was once a “generous advance allowance” alien alongside the measure.

Shares in Jersey bankrupt bottomward 10.2p, or 4.3%, at 226.3p.

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