Serica Energy said yesterday it was still trying to solve the long-running “conundrum” of exporting gas from its UK North Sea Columbus field.
But the oil and gas firm hailed the recent Wood Review and its “hard-hitting findings” as a potential saviour to firms struggling to access infrastructure.
Serica was forced to consider alternative options for gas export from the field after BG Group decided against connecting the discovery to its Lomond installation via a bridge link.
Another plan to use a direct subsea tie-back to Lomond also faltered.
Serica chairman and interim chief executive Tony Craven Walker said implementation of the Wood Review, in which former Wood Group chairman Sir Ian Wood set out his ideas for boosting investment in the UK North Sea and encouraging collaboration to resolve long-standing infrastructure access issues, could help in such cases.
He added: “Serica is not alone in facing problems gaining access to infrastructure.
“The fact that it has taken us and our partners eight years of investment and endeavour to gain access to infrastructure, and we still have not been able to reach agreement with the major companies who operate the platform and pipeline systems, has sent a strong message to the UK Government that regulatory and oversight processes have got to be strengthened if the North Sea’s potential is going to be fully exploited.
“The Wood report, which was commissioned by the government to investigate the problem and published in February 2014, supports the case for change.
“It is hard-hitting in its findings and requires existing infrastructure operators to collaborate fully to make infrastructure available to smaller companies.”
Announcing annual results yesterday, Serica said: “Our main challenge remains to resolve the conundrum of an export route for Columbus but we have options and are receiving support. Progress has been slow, although dialogue is continuing.
“If access to the Lomond offtake route cannot be secured on acceptable terms, then there are other realistic alternative offtake routes that are currently under consideration.”
Columbus – about 155 miles east of Aberdeen – is in the pre-development stage.
London-based Serica is operator for the field, with a 50% stake.
Serica reported pre-tax losses of £3million from operations during 2013, against losses of about £9.8million in 2012.