In a way, it would be easy to write this article. There are no exploration wells currently being drilled in the Netherlands, neither onshore or offshore. Full stop.
Is it a sign of the times? At the start of the year, the outlook for exploration – at least offshore – looked a bit brighter when a tax incentive was introduced. This came as a response to low gas prices and the notion that more favourable conditions were offered in neighbouring countries.
In the meantime, gas prices have soared, Groningen is surely going to close and the strategically important gas storage facilities entered the heating season at much lower levels than is normally the case.
Based on these observations, one would argue that all ingredients are there to step up activity and drill some of the remaining prospects out there. As we reported on a few months ago, based on an assessment of exploration potential across the Dutch sector, EBN suggested that there is still approximately 250 MMboe of risked resources (mainly gas) yet to be found.
The EBN Dutch Exploration Day, which was supposed to take place in Utrecht this Thursday, is now going to be held as an online event in the light of newly introduced Covid-related restrictions.
However, despite these seemingly favourable factors, drilling activity remains very depressed in the Dutch part of the North Sea, where the focus now seems to lie on developing older discoveries.
An example of this is the Kistos-operated Q10-A field, where the company has now appraised the Lower Cretaceous Vlieland Sandstone oil accumulation with positive results. The Q10-A field being the first offshore discovery in the Dutch sector – gas is already being produced from the Rotliegend, Zechstein and Triassic – it shows that almost 60 years later there is still potential to tap into.
Kistos may not be the only newcomer trying to do things differently. With NAM recently announcing the preparations for a sale of its assets in a move to divest its upstream business, a lot of acreage will become available for purchase in the next few years. And with many of the fields included in the sales process being near the very end of their conventional lives, they probably need creative small players to carve out a future.
Curious to know about exploration on the Norwegian Continental Shelf? Attend the NCS Exploration Strategy Conference, taking place in Stavanger tomorrow and Thursday, and hear from all the main players how they envisage further exploring the NCS.
What’s in store
So, what’s in store for the Dutch Continental Shelf in the near future? With a bit of luck, Neptune kicks off an exploration well even this year in the northern offshore to test a shallow gas prospect in block F5. According to Lex de Groot, managing director at Neptune Netherlands, the company has got more exploration wells in the pipeline as well.
It would not be too much of a surprise to see One-Dyas drilling another well in the GEMS area either. In addition, the company may also be looking to appraise the IJssel (F06-07) discovery announced last year.
In conclusion, even though activity is still low, it cannot be ruled out that there will be a slight uptick in activity in the next year.
HENK KOMBRINK
