Business
UK North Sea Strategy Update
UK North Sea Strategy Update.
About this update from Parkmead Group Plc
[{"type":"text","content":"\n\n19 June 2023\n \nThe Parkmead Group plc\n(\"Parkmead\", the \"Group\" or the \"Company\")\n \nUK North Sea Strategy Update\nParkmead, the independent energy group with operations in the Netherlands and the UK, provides the following update on its strategy in relation to its UKCS licence interests.\nStrategic Direction\nThe UK North Sea upstream industry is facing unprecedented challenges associated with volatile oil and gas prices, ageing infrastructure and rising capital and operating costs. This, combined with the sharp increases in taxation in the last 12 months and the loss of key equipment and human resources from the UK North Sea, has resulted in a large number of drilling campaigns and investment decisions on new field developments being delayed, curtailed or cancelled. A further major consideration has been the significant increase in the cost of capital made more difficult by a lack of appetite from traditional funding sources to support oil and gas projects. These factors are affecting all companies active on the UKCS, from major multi-nationals to independents.\n \nParkmead, like many of its peer companies, has found it necessary to re-evaluate its strategic direction and develop a transition plan that moves the company forward during an ever-evolving regulatory framework, which recognises the social and economic demand for viable and sustainable clean energy.\n \nParkmead is an experienced British independent energy company, with a management team that has a successful track record of operating on the UKCS, and we remain fully committed to our home region. However, given the unprecedented very high hurdles created by the current challenges, the Parkmead Board has taken the decision that it must now necessarily be very careful and selective in its forward UK investment strategy. The Board of directors has agreed that Parkmead's primary focus will be on building a high-quality portfolio of gas producing assets and electricity generation from renewable energies, that meet the ultimate aim of net-zero. Alongside this, Parkmead will continue to work on its existing portfolio of oil and gas assets where they have the potential to be developed rapidly within the UK transition phase and also evaluate acquisition opportunities that are aligned with this strategy.\nPerth Area\nAs annou...