UKCS Unit Operating Costs 2019
In October 2020, the OGA published the UKCS Operating Costs 2019 Report which showed that, in 2019, the operating cost environment on the United Kingdom Continental Shelf (UKCS) was one of stability, with operating expenditure (OPEX), production and unit operating cost (UOC) all remaining stable from 2018 to 2019.
Total OPEX decreased marginally (by £3 million, 0.4%) to £7.3 billion in 2019 (2019, real prices). Production also saw a small decrease (0.6%) from 1.70 to 1.69 million barrels of oil equivalent per day. This resulted in UOC remaining at £11.9/boe from 2018 to 2019.
Operating costs for offshore fields grew by 3% in 2019 while OPEX for pipelines and terminals decreased by 15% (2019, real prices).
Half of operators saw a decrease in their average UOC, with this improvement in cost efficiency driven by both OPEX reductions and production gains.
The OGA acknowledges that the cost landscape of the UKCS has changed within the past few months due to the COVID-19 pandemic. This report uses data as reported by operators of sanctioned activities in the 2019 UK Stewardship Survey and the OGA’s February 2020 projections. Please note that forward projections of costs may have changed since the collection of this dataset.
The 2018 report, which includes a link to the 2017 report, can be viewed here.