Jersey Oil & Gas plc aims to optimise its delayed UK North Sea Buchan oil joint venture, in the light of new government guidelines, including required approval of the project’s scope 3 emissions.
PROGRESS
The company is focused on the Greater Buchan Area, containing estimated resources of more than 100 million barrels of oil equivalent with further exploration potential.
Jersey holds a 20% non-operated interest in the GBA, following previous farm-outs of 50% to operator NEO Energy and 30% to Serica Energy.
Jersey said that Buchan had undergone “significant” progress, with the draft field development plan and environmental impact assessment submitted to North Sea Transition Authority.
Value engineering work also continues, particularly for drilling and subsea infrastructure.
Delays, caused by industry talks with the Government, have resulted in the need for possible alternative floating production, storage and offloading vessels to the previously assigned Western Isles FPSO.
Corporate changes to Jersey’s partners have also altered the status of companies operating in the UK North Sea.
NEO combined with Repsol S.A.’s UK subsidiary, and last month announced a subsequent merger with TotalEnergies S.A.’s UK business to create NEO Next+, while Serica also increased through acquisitions.
Chief executive officer Andrew Benitz noted that NEO’s deals would make it the largest operator and producer in the UK North Sea.
“This represents an exciting step, both for us to be working alongside the leading player in the basin and to be part of one of the key growth opportunities in its asset portfolio.”
Jersey said it was currently “right sized” and aimed to grow and diversify its business through acquisitions that brought cash flow.
The company ended 2025 with approximately £11 million cash and no debt.
Mr Benitz added: “For Buchan, taking the time now, to verify and engineer the best possible development solution within that cycle, should ultimately enhance the overall value of the project for all parties.”
GBA
The project comprises licences P2498 and P2170, which hold the Buchan redevelopment project, the J2 and Verbier oil discoveries and several drill-ready exploration prospects.
In late 2025, the partners relinquished part of the P2170 Verbier licence, containing the “highest risk” exploration prospect, resulting in a 40% decrease in licence fees.
The JV retains the Verbier and J2 discoveries and the Verbier Deep and Cortina exploration prospects.
Licences P2498 and P2170, whose second terms end in February 2027 and August 2026 respectively, need approval of a field development plan before extending to a third term.