BP has struck a rig sharing deal with its Norwegian joint venture partner Aker BP in what has been described as a “growing divide” between the UK and Norway’s energy policies.
BP has entered a rig sharing arrangement to bring the Noble Claus Bachmann rig to the UK to drill a short-term three well campaign on the Schiehallion field.
BP North Sea boss Doris Reiter said the firm was making a “relatively modest investment” to extend the West of Shetland field thanks to the “innovative collaboration” but warned the “scale and pace of future capital in the North Sea will depend on a competitive policy and fiscal environment”.
BP will have between 150 to 210 days’ use of the rig, formerly known as the Noble Great White, to drill the wells that will produce through its Glen Lyon floating, production, storage, offload (FPSO) vessel.
The months the semisubmersible spends in the UKCS is part of a longer, three-year contract Aker BP has agreed with rig owner Noble Corporation and contractor Halliburton.
David Whitehouse, CEO of the industry trade body Offshore Energies UK (OEUK), said the deal has revealed a “gap” between the UK and Norway that is “widening fast”.
He said: “A competitive North Sea needs an investment climate that lets companies commit with confidence – and right now, the gap between the UK and Norway is widening fast.
“We welcome this new arrangement between BP, Aker BP, Noble and Halliburton as a strong example of the kind of collaboration the North Sea needs to support efficient, long-term investment. But it also highlights a growing divide.”
Both Norway and the UK have similar levels of taxation but the structure differs significantly, with Norway offering incentives to invest where the UK has banned issuing new oil and gas licences and has delayed decisions on whether or not key undeveloped fields such as Rosebank and Jackdaw can go ahead.
This variance means Norway has greater reserves and can make longer term decisions on production. This is in the face of claims made by the UK government that decline in the North Sea is a matter of geology not policy.
“In Norway, operators can secure rig programmes for multiple years; in the UK, they are limited to months. That contrast isn’t about capability or geology – it’s about confidence,” said Whitehouse.
“When world‑class operators can plan long term in one part of the North Sea but are forced into short‑term contracts in another, the message to investors is unmistakable.”
BP senior vice president North Sea Reiter said: “This focused programme enabled by an innovative collaboration with Aker BP, Noble and Halliburton supports BP’s North Sea strategy – maximising value from existing assets, extending the life of our hubs, and making disciplined use of our established West of Shetland infrastructure.
“But it is a relatively modest investment compared with the opportunity I firmly believe still exists in the UK North Sea – and it underscores a wider point: the scale and pace of future capital in the North Sea will depend on a competitive policy and fiscal environment.”