ESSO UK PLANNING SLIGHTLY LESS OIL EXPLORATION
<Esso U.K. Plc>'s 1987 exploration
scheme involves less activity than last year, said a company
spokeswoman.
    She confirmed that Esso UK, a member of Exxon Corp <XON>,
was likely to participate in 15 to 20 wells this year, against
25 wells last year. Total capital expenditure budget this year,
however, will be similar to last year's budget of about 450 mln
stg, she said.
    She added that exploration and production expenditure last
year was 370 mln stg and Esso UK turned the year with 1.2
billion stg of forward capital commitment.
    The spokeswoman said 30 to 40 pct in cost savings had been
made for development plans for Kittiwake - the only field in
the Shell-Esso Gannet North Sea oil and gas cluster still being
considered for development over the next few years.
    Esso UK and <Shell U.K. Exploration and Production>, part
of the Shell Transport and Trading <SC.L> group, have so far
spent between 300 to 350 mln stg on Kittiwake, with recoverable
reserves of some 70 mln barrels. Cost savings were also made on
the 40 to 45 mln barrel Osprey field which is expected to cost
at least 150 mln stg to develop. Development of both fields are
expected to go ahead this year or early next year, she said.
 REUTER
