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Oil Production Costs

Volume 932: debated on Friday 27 May 1977

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asked the Secretary of State for Energy, of the total capital cost of developing leading oil fields in the North Sea, what percentage is allocated to production platforms, modules, gas separation units, and pipelines to shore terminals or mooring facilities.

Disaggregation of total capital costs for North Sea oil field development into the detail requested is not possible. A number of different methods are used to produce and convey the oil. The following broad average figures, based on estimates from the operators, conceal wide variations between particular fields and therefore need to be treated with reserve:

Platform structure30 per cent.
Platform equipment20 per cent.
Pipelines and single-point moorings20 per cent.
Terminals15 per cent.
Development drilling and miscellaneous15 per cent.