The UK’s offshore energy regulator, the North Sea Transition Authority (NSTA), has revealed that 56 North Sea wells returned to production last year, with more cost-efficient well interventions helping operators deliver 16 million barrels of oil (boe) from shut-in wells on the UK Continental Shelf (UKCS).
The NSTA’s ‘2026 Wells Insight Report’ outlines a significant uptick in well reinstatement activity. In total, the well stock on the UK Continental Shelf stood at 2,298 wells, a 7% decrease from the previous year. Among these, 1,439 were operational, while 558 remained shut-in, and 301 were plugged permanently.
This year, the strategic focus on well interventions has seen North Sea operators produce an additional 16 million barrels of oil from 56 reinstated wells. This progress underscores a commitment to maximizing existing resources while minimizing new drilling projects. During this initiative, the NSTA has worked closely with licensees to identify potential candidates for reinstatement, facilitating the necessary operations.
The NSTA credited a notable improvement in intervention efficiency for these advancements. The cost per barrel of oil equivalent added decreased impressively from £9.60 ($12.96) in 2024 to just £7.60 ($10.26) in 2025. Operators performed a total of 398 well interventions throughout the year, indicating a strategic pivot toward more efficient rehabilitation of existing wells as opposed to developing new ones.
However, the NSTA also noted that more than 500 wells are still shut-in. While some of these wells are slated for decommissioning, there are still numerous opportunities for reactivation that could significantly contribute to the UK’s oil production landscape.
The ongoing dialogue between the NSTA and leading operators is crucial as they seek to uncover additional reinstatement prospects. Despite the successes, the report reveals a mixed bag of activities in the well sector. In 2025, only 38 development wells were drilled, with a notable expenditure of £1.6 billion ($2.2 billion) – a figure that has remained stable compared to previous years. The total drilled length saw an increase, jumping from 162 kilometers in 2024 to 177 kilometers in the following year, and the average drilling cost per meter slightly reduced from £10,135 ($13,682) to £10,000 ($13,504).
Interestingly, exploration and appraisal activities experienced a downturn. Operators drilled just three appraisal wells and did not explore any new sites, contrasting sharply with the three appraisal and three exploration wells drilled the year before. Keith Hogg, NSTA Wells Manager, reflected on these trends by saying, “The NSTA is fully committed to supporting industry to boost cost-effective production. It is encouraging to see our emphasis on well interventions resulting in an additional 16 million barrels produced.”
However, Hogg also expressed concerns about the decrease in intervention numbers and the declining exploration and appraisal drilling activities. The rising rig costs and potential loss of skills and resources necessitate that operators engage actively with their supply chains and invest in well development and rehabilitation.
Looking ahead, the report suggests a cautious optimism for the future, forecasting that 32 exploration and appraisal wells could be drilled between 2026 and 2028. This anticipated drilling activity would break down into five wells in 2026, 12 in 2027, and 15 in 2028. The majority of these wells (14) are expected to be located in the Central North Sea, with the Southern North Sea and East Irish Sea, Northern North Sea, and areas West of Shetland also seeing activity.
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