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U.K. OFFSHOPE OIL FLOW ABVANCES TO 5 YEAR HIGH MARK

May 9, 1994

Oil production off the U.K. averaged 2.41 million b/d in March, up 4% from February and the highest month's average in 5 years. Those figures were published by Royal Bank of Scotland plc, Edinburgh, which attributed most of the rise to fields recently placed on production. Most notable gain was in Nelson field, which added 37,800 b/d to average production, a rise of 284% from February. In addition, Tiffany field flow increased 129% over February because of an extra 23,000 b/d during March.

Oil production off the U.K. averaged 2.41 million b/d in March, up 4% from February and the highest month's average in 5 years.

Those figures were published by Royal Bank of Scotland plc, Edinburgh, which attributed most of the rise to fields recently placed on production.

Most notable gain was in Nelson field, which added 37,800 b/d to average production, a rise of 284% from February. In addition, Tiffany field flow increased 129% over February because of an extra 23,000 b/d during March.

Hudson field was shut in from midMarch to early April by operator Amerada Hess Ltd. to allow installation of gas lift equipment. Hudson average production fell 22,500 b/d in March, down 63% from February.

Average offshore gas production fell sharply with seasonal demand dectine.

Offshore U.K. production averaged 8.16 bcfd in March, down from a record 10.03 bcfd in February.

The bank said the monthly average Brent crude oil price rose to $13.81/bbl in March from $13.76/bbl in February. This and rising oil production did not prevent a decline in oil and gas earnings, however.

"Falling seasonal demand for gas and the continuing low price for Brent crude oil combined to produce a 6% fall in Britain's oil and gas revenues," said Jo Armstrong, head of business economics at the bank.

"Although the dollar price did strengthen very slightly in March, the strengthening of sterling against the dollar meant that the sterling price fell by 0.5% to just above 9.25/bbl."