The other division will focus on maximizing production and extending field life in the North Sea, the company confirmed today.

Earlier the company warned of potential increases to the cost of decommissioning.

As well as creating the two divisions, Talisman Sinopec Energy UK (TSEUK) has launched a “major transformation” of the business involving the appointment of a new leadership team and a business improvement programme.

“Our industry is operating in a mature environment, against a backdrop of, seemingly, ever increasing operating costs, asset integrity and maintenance issues as well as a declining oil price,” said TSEUK in a statement.

TSEUK is a joint venture between Canada’s Talisman Energy and Chinese state-owned Sinopec. It claims to operate more oilfields in the UK North Sea than anyone else, with nine offshore platforms and two floating facilities.

On 4 November Talisman reported that the net loss in TSEUK increased by CAD$25 million compared to the prior year due principally to decreased production volumes, lower oil prices and higher operating expenses.

In a discussion of results for the period ending 30 September, Talisman said: “Throughout 2014, TSEUK has been challenged with respect to asset uptime, declining production and emerging potential increases to development and decommissioning cost estimates.”

Today, TSEUK said that the way ahead “demands creativity and innovation”.
“The next chapter for TSEUK demands creativity and innovation as we develop excellence in late-life asset management and decommissioning. We are shaping the future direction of our business – and industry - to protect our long-term sustainability within the sector.”

The statement continued:
“Our Operations division will focus on being an excellent operator of UKCS assets. We will maximise production and extend field life. This will involve investment in incremental opportunities, such as infill wells and projects, as well as a relentless drive to improve production efficiency and manage cost.

“Our Late Life Asset division will be very different and will put us at the forefront of late-life asset management. We will find innovative and creative ways to become a safe yet ultra-low cost operator. There will be a very strong focus on cost delivery, as well as selected, but limited, investment to maximise economic resource recovery.”