China's CNOOC's gas discovery in the Glengorm prospect located in offshore U.K. Central North Sea is the largest gas discovery in the U.K. since 2008, Kevin Swann, a senior analyst with Wood Mackenzie’s North Sea upstream team, said after CNOOC and its partner Total announced the discovery on Tuesday.
In a written statement, Swann said the find shows there is still life in some of the more mature prospects in U.K. waters.
The Glegorm discovery is estimated to hold around 250 million barrels of oil equivalent.
However, the gas at Glengorm is subject to very high pressure and temperatures, which makes it more challenging and costly to develop.
"This was third time lucky for CNOOC at Glengorm. Technical problems saw it try and fail to drill the prospect twice in 2017, so persistence has paid off. This is a good start to what could prove to be a pivotal year for the U.K. exploration with several high impact wells in the plan," Swann said.
CNOOC holds a 50 percent share in the prospect while Total and Edison each hold a 25 percent stake.
By Murat Temizer