Issues encountered while setting up a floating platform and connecting infrastructure have led to an increase in costs.
North Sea-centric oil and gas corporation, Parkmead, has chosen to abandon its Perth project due to waning funding interest and stringent offshore regulations in the UK.
Parkmead announced that its future strategy will shift towards gas assets and renewable energy electricity, with a focus on swiftly developing existing North Sea assets.
This strategic shift has led to a halt in the Perth development, located in the Central North Sea, and a financial write-down of £33mln. Furthermore, licenses P588 and P2154 will not be renewed.
Parkmead elaborated that difficulties in establishing a floating platform and connecting infrastructure increased the project’s costs, while diminished public and political support for new oil initiatives resulted in a hesitant and conditional approach from the industry.
Earlier today, Labour Leader Kier Starmer pledged to cease North Sea exploration if elected, shifting focus towards clean energy.
The company added that Skerrymore, also located in the Central North Sea, will be drilled as rapidly as possible. Other license applications in the North will be transition-style assets with fast turnarounds.
Tom Cross, the executive chairman, remarked: “Over recent years, our team has devoted a significant amount of effort to unlock the intricate Perth area. It’s understandably disappointing for our team that despite these immense efforts, collaborating closely with neighbouring operating companies and highly skilled supply chain firms, a combination of challenging factors has made the project economically unviable.”
He added that Parkmead remains in a robust position with the promising prospects of Skerryvore offshore in the short-term, and the Fynn Beauly and Fynn Andrew assets in the medium-term, alongside any new licenses.
