The rush to “abandonment” of major North Sea infrastructure is putting the recovery of billions of barrels of crude at risk.

Iain Hutchison, managing director of Perth-based extended reach drilling consultancy Merlin ERD, said the UK would be making a grave error if it switched its focus to decommissioning too early.

He estimated there were up to 12 billion barrels of oil still recoverable from the UK Continental Shelf.

However, he said he feared considerable reserves were simply being written off and abandoned as uneconomic when new and novel drilling technologies could recover them at an acceptable cost.

He said an example of good practice was the Forties field, which oil major BP sold to Apache in the early 2000s.

The play had been producing since 1975 but Apache believed there was significant reserves still to be recovered.

A revaluation saw the Forties resource estimate increased and further investment was brought forward that has significantly extended the life of the field.

“There are some assets which are definitely due for decommissioning – you just have to look at them and you know they’ve had their run,” Mr Hutchison said.

“But there are many more that are being earmarked for abandonment based on their current performance, which is below average and below industry performance around the world.

“These assets are very expensive because the industry has not been doing the best job with them.

“Using advanced drilling techniques could bring an extra 10 billion barrels of oil.

“My view of the North Sea is there is lots of oil out there but if the grim reaper of abandonment comes early then it will be left there.

“We need to make more of our existing assets and take the approach of ‘what will it take?’ to recover the oil rather than ‘it won’t work’.”

Mr Hutchison was speaking after Merlin beat 14 rivals to be named as small exporter of the year at the Scottish Export Awards 2016.

The company, which has its headquarters at Necessity Brae in Perth, has completed more than 190 projects including major multi-well extended reach drilling contracts in 34 countries worldwide.

More than 90% of Merlin’s order book is either repeat business or has come through client recommendation.

Mr Hutchison said he was delighted at the recognition.

“I am extremely proud of how the business has grown and the contributions we’ve been able to make not just for clients, but for Perth and Scotland,” he said.

“It is testimony to the efforts of our talented team and exemplifies our achievements as industry leaders in advanced drilling technologies on a global scale.

“The team’s determination to go further is truly inspirational. It’s a real honour for us to receive this award.”

Among other winners was north east-based Alba Power, which scooped the large exporter prize.

The Netherley-based firm boasts more than 140 gas turbine customers in 16 countries worldwide.

Kinross-shire strategic consultancy, marketing and in-house support specialists Genoa Black were also winners on the night. The group were named as professional services exporter of the year.

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