Appendix

North Sea Oil - Key Dates

1964

• First licences granted offshore UK
• First well in UK sector drilled by Texaco (now Chevron), in block 38/29

1965

• First gas field discovered by BP at West Sole

1967

• First North Sea gas field – West Sole – started production

1969

• First oil found in UK waters by Amoco (now BP) – Arbroath

1975

• First UK offshore oil produced – Argyll by Hamilton (now BHP) in June
• First concrete platform installed on Beryl by Mobil (now ExxonMobil)
• The one thousandth well drilled in UK waters

1977

• First West of Shetlands discovery – Oil found in block 206/8 by BP (Clair field)

1978

• UK North Sea production exceeded one million barrels of oil per day
• First production platform decommissioned – from BP's West Sole field

1981

• UK oil production exceeded consumption

1985

• Oil production reached initial peak at 127.5 million tonnes (including NGLs)

1988

• The Piper Alpha tragedy on 6 July

1991

• One hundred fields in production in the UK

1992

• First out-of-round offshore awards

1994

• Record number of fields (33) receive development authority including Foinaven, the fi rst oilfield to be developed to the West of Shetlands

1996

• Development well activity reached new record of 261 wells

1997

• Discharge of oil contaminated drill cuttings ceased from 1 January 1997

1998

• Number of offshore fields reached 204, with combined oil and gas production of 220 million tonnes of oil equivalent. 59 exploration and appraisal wells drilled

1999

• Oil price fell to $9.83 per barrel in February, but prices averaged $17.88 over the year
• Oil and gas production for year peaked at a record 125 million tonnes of oil and 105 billion cubic metres of gas
• The joint Government/Industry Oil and Gas Industry Task Force published its report, 'A Template for Change' setting out its vision of the UK industry in 2010

2000

• PILOT launched, with representatives from Government, operators, contactors, suppliers and the unions
• Total UKCS gas production continued to rise to 115 billion cubic metres, while oil production declined to 115 million tonnes for year

2001

• Pan-Canadian Petroleum Ltd discovered Buzzard (now owned by Nexen), the largest North Sea oil find in recent years
• Publication of 'Striking a Balance', the UK oil and gas industry's first sectoral Sustainability Strategy

2002

• Industry hit by 10 % supplementary Corporation Tax rate in April Budget
• Royalty abolished
• The DTI introduces the "Fallow Initiative" and "Promote Licence" to stimulate activity in the UKCS
• Sharp decline in exploration and appraisal activity -16 wells were drilled
• Four significant new discoveries announced and 18 projects received development approval

2003

• The UK ranked 7th largest producer of oil and gas in the world
• 21st Licensing Round saw 27 new entrants to the UKCS and included the award of 53 Promote Licenses, introduced for the first time to encourage new players in exploration
• Petroleum Revenue Tax was removed from new tariff business on UKCS
• The UK and Norwegian Governments agreed on key terms for a Treaty governing cross-border co-operation between the two countries

2004

• Strong rise in exploration and appraisal activity – 63 wells drilled, the highest number since 1997
• Four companies acquired their first commercial interest in the UK and 15 new companies were offered acreage as part of the 22nd Offshore Licensing Round, which included Frontier Licences in the Atlantic Margin
• A new Code of Practice on Access to UKCS Oil and Gas Infrastructure agreed

2005

• PILOT launches Brownfields Report and introduction of 'stewardship' initiative
• 23rd Licensing Round attracted the highest number of applicants in 30 years

Sources: DTI, Royal Bank of Scotland and UKOOA