UK player gets its hands on one of ‘largest remaining oil resources’ offshore Scotland

The UK regulator North Sea Transition Authority (NSTA) has formally awarded a license containing three blocks situated off the coast of Scotland to Parkmead Group.

Licence P2634, situated in the North Sea’s Outer Moray Firth, off the coast of Scotland, and comprising blocks 14/15a, 14/20d, and 15/11a, is a 50:50 joint venture between Parkmead, which is the operator, and Orcadian Energy. The duo was provisionally awarded three blocks as part of the third batch of the UK’s 33rd oil and gas licensing round in May, which Offshore Energies UK (OEUK) projected would boost energy security and business confidence across all offshore energy sectors.

The partners intend to collaborate on the commercialization of the Fynn Beauly field, described as one of the UK’s largest undeveloped discoveries. Parkmead claims heavy oil accumulation has been proven by three wells, containing an estimated 740 million – 1.33 billion barrels of oil in place.

As disclosed by Parkmead’s Executive Chairman, Tom Cross, his firm is aware of the uncertainties around the new administration’s plans for the oil and gas sector in the UK North Sea following the election.

“The team will evaluate whether it can deliver a commercial development of the major Fynn Beauly accumulation that also meets the overarching net zero objectives that are key to obtaining the relevant regulatory approvals. The Board believes that this licence offers Parkmead and its investors access to huge potential upside, via one of the largest remaining oil resources left on the UK continental shelf,” noted Cross.

The next step involves developing the approved three-year work program to determine whether a technically and economically viable development can be delivered in line with the NSTA’s Net Zero Strategy. The plan is to carry out geophysical, geochemical, reservoir modeling, and production technology studies to assess the feasibility of reducing oil viscosity using enhanced oil recovery techniques, possibly including a combination of polymer flooding with geothermal heat uplift to improve recovery.

Last year, Parkmead gave up on the potential Perth oil development and decided not to extend the P588 and P2154 licenses containing the Perth discovery, blaming the windfall tax hike for its decision.

Meanwhile, Orcadian sold an 81.25% interest in license P2244 to Ping Petroleum. The license contains the Pilot development project, said to be one of the largest undeveloped discoveries in the Central North Sea.