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Enhanced Oil Recovery (EOR) Strategy Contents 1. Foreword 3 2. Executive summary 4 3. Strategy context 5 3.1 Where are we now and what’s the opportunity? 5 3.2 EOR opportunities (un-risked incremental oil potential) 5 3.3 EOR opportunities (risked) 6 3.4 Industry context – impact of oil price and activity levels 6 4. EOR ambition and implementation 7 4.1 OGA EOR ambition 7 4.2 Implementation programme 7 5. Implementation and accountabilities 8 5.1 Eight-step programme 8 Programme 1: Existing EOR projects 8 Programme 2: MER for future EOR projects 8 Programme 3: Workgroups and industry partnerships 8 Programme 4: Technology development and deployment 8 Programme 5: Creating value – improving economics 9 Programme 6: Advance next EOR and support CO storage 9 2 Programme 7: Knowledge management 9 Programme 8: Communication and stakeholder plans 9 6. Communication and dialogue 12 6.1 Communication plan 12 6.2 Risks to achieving the strategy 12 7. Conclusion 13 8. Acknowledgements 14 1. Foreword | EOR Strategy 3 1. Foreword The OGA has been set up to influence, promote and regulate the UK oil and gas industry and has been provided with a range of new powers to enable it to do so. The development of a series of strategies represents a key step in setting the strategic direction of how the OGA and industry will work to maximise economic recovery (MER) from the United Kingdom Continental Shelf (UKCS) and was one of the core recommendations of the Wood Maximising Recovery Review. The MER UK Strategy underpins our work and came into force in March 2016. It describes how MER UK should operate in practice, setting out a legally binding central obligation to take the steps necessary to secure the maximum value of economically recoverable hydrocarbons. It also sets out a range of supporting obligations as well as the required actions and behaviours of collaboration and cost reduction. In support of the MER UK Strategy the OGA is, in collaboration with industry and the MER UK Boards, developing this series of strategies. The purpose of these strategies is to drive the direction of a new way of working across the oil and gas lifecycle. The strategies will also be followed by accompanying delivery programmes, providing further direction and detail on the implementation of each strategy. 4 2. Executive summary | EOR Strategy 2. Executive summary Successful Enhanced Oil Recovery (EOR) can The current status and future potential of EOR in the play a huge role in maximising economic recovery UKCS is described in Section 3. The OGA’s ambition from the UKCS. EOR can significantly increase the of supporting the delivery of up to 250 mmboe volume of recovery, extend field life (by as much through EOR, described in Section 4, includes: as 10 years), support job provision in the supply • Working with operators and supply chain to chain, help stimulate field redevelopments and defer support existing polymer EOR projects and decommissioning activities. ensuring readiness for future projects However, offshore EOR is currently largely unattractive • Demonstrating a proven offshore operation of low economically due to being both capital intensive and salinity EOR by 2021 and encouraging evaluations requiring higher operating costs than conventional for all new projects water flood. The importance of encouraging industry uptake of • Advancing the next tranche of EOR technologies EOR was outlined in the Wood Maximising Recovery and developing a framework for their economic Review and subsequently EOR is an integral theme of implementation. the MER UK Asset Stewardship Board. Section 5 describes the eight-step programme – As stated in its Corporate Plan, the OGA has endorsed by the MER UK Asset Stewardship Board committed to delivering a strategy to facilitate – which will help aid the delivery of EOR projects, sanctioning, by 2021, of projects designed to deliver while Section 6 provides an overview of stakeholder up to 250 million barrels of oil equivalent (mmboe) of engagement with regard to EOR. additional reserves. This will be implementing polymer and low salinity water flood techniques as well as other EOR opportunities. The aim of this strategy is to help deliver EOR projects in the UKCS and this strategy supports both the MER UK Strategy and the OGA Corporate Plan.
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