How to become a top-5 producer
- Growth – Adding value to the current portfolio through exploration and potentially also through M&A
- Major projects – Including Culzean, Johan Sverdrup, Golden Eagle and Tyra Southeast
- Operations excellence – Production from existing portfolio can be boosted by 10% by reducing unplanned losses and improving maintenance and shutdown efficiency
Maersk Oil is looking for new long-term growth opportunities in the North Sea, investing heavily in projects and improving the efficiency of operations.
The North Sea region has an estimated remaining potential of 26-38 billion barrels, according to consultancy Wood Mackenzie, and it remains a technically attractive province for future development - provided costs and regulatory regimes continue to incentivise investment.
Maersk Oil aims to become one of the five biggest producers in the North Sea in the first half of the next decade, through a combination of its existing portfolio, major capital investment and more efficient operations, which can add significant production, says CEO Jakob Thomasen. It is currently 9th. The forecast is based on only organic growth – so with growth investments, it could happen sooner.
“We have the capital to invest at a point in the cycle where better value is on the table than at any time in almost a decade,” Thomasen says. “Many other oil companies are scaling back because of the current market, but that does not mean the assets are not viable and the right opportunities can offer great rewards.”
The Group’s board has given the go-ahead for Culzean, a natural gas field which diversifies the oil-dominated portfolio and could supply 5% of the UK’s needs, and Maersk Oil will work with its partners through the summer to secure sanction for the project.