Page 16 - EurOil Week 35 2022

EurOil POLICY EurOil

Ofgem hikes UK energy

price cap by 80%

UK UK energy regulator Ofgem has raised the UK’s prices soared from GBP176.50 to GBP635 per
energy retail price cap at GBP3,549 ($4,127) per MWh.
Ofgem has also year for a “typical” dual-fuel household, marking The new cap will be GBP520 per MWh for
swtiched from a an 80% climb from the previous cap. power and GBP4.40 per therm for gas, mean-
seasonal to a quarterly The hike comes despite growing public dis- ing that even with the steep hike, suppliers
review of the cap. content over the cost of living crisis, particularly will still struggle to recover their procurement
when it comes to energy and fuel supply. Labour costs.
and other opposition parties have called for the The government has provided some sup-
cap to be frozen over the next year, but neither port measures to shield households, with each
Liz Truss, the favourite to replace Boris Johnson household set to receive a GBP400 reduction in
as prime minister, nor her contender Rishi Sunak their energy bill this winter, dealt out in GBP66
have supported such a move. monthly instalments, while vulnerable house-
The wholesale element of the price cap has holds will be entitled to at least an additional
been more than doubled to GBP2,491 from GBP1,200.
GBP1,077, with Ofgem saying this value was Ofgem has also switched from a seasonal
based on the hedging strategy of a “nominal to a quarterly review of the cap, reflecting the
supplier.” This sets the cap for gas at GBP2.93 per market’s volatility. The cap will only be raised
therm, and for power at GBP2,491 from GBP282 for the first quarter of next year if prices remain
per MWh. During the observation period for the anywhere near the current soaring level, as the
cap, which ran from February 1 to August 18 of wholesale component of the next cap will include
this year, winter 2022-23 NBP prices rose from increased weighting of prices from the coming
GBP1.83 per therm to GBP5.945, while power months. ™

PROJECTS & COMPANIES

Neptune reports oil find near

Norway’s Gjoa field

NORWAY LONDON-BASED Neptune Energy has made Neptune’s position in the Greater Gjoa area,”
a new commercial oil discovery at the Ofelia the company’s managing director for Norway
It is the third discovery exploration well near its Gjoa field off the coast and the UK, Odin Estensen, said in a statement.
to be made in the Agat of Norway, the company reported on August 26. “Gjoa is an important growth area for Neptune
formation. Preliminary estimates place the size of the in Norway, where existing infrastructure allows
discovery at 16-39mn barrels of recoverable oil for low-cost and low-carbon developments.”
equivalent, Neptune said, noting that the oil had The company added there were several more
been encountered in the Agat formation. North exploration opportunities in the area.
of the well there is also a potential upside of Ofelia was drilled 16 km north of the Gjoa
around 10mn boe of recoverable gas in the shal- field at a water depth of over 340 metres, using
lower Kyrre formation, Neptune added, noting the Deepsea Yantai rig. The well confirmed oil/
that this brought the total recoverable volume water contact at a deepsea depth of 2,640 metres.
to 26-49mn boe. The company is looking to tie Neptune announced the Ofelia discovery a
the new field back to the Gjoa semi-submersible day after kicking off an infill drilling campaign
platform. at the Cygnus gas field in the southern sector
The latest find marks the third discovery to be of the UK North Sea. The field was launched in
made in the Agat formation, following the Duva 2016, but Neptune is continuing drilling work
field, now in production, and the Hamlet find, to support its production for longer. The cur-
made in late March at the Gjoa licence. rent in-fill well under development, the field’s
“I am pleased to announce our second dis- tenth, is due to be completed in the fourth
covery in four months which further enhances quarter. ™

P16 www. NEWSBASE .com Week 35 02•September•2022