Rise in well drilling costs

Higher fuel costs have driven up the cost of drilling a well in the Moray Firth by £1 million.

Operator Corallian Energy told its partners the cost estimate for the Wick well, on a dry hole basis, has increased to £5.2m from £4.2m.

It attributed the increase to higher prices for fuel for the drilling rig and tugs.

Corallian recently entered into a letter of intent with Ensco to hire a rig which would drill Wick later this year.

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