A new report has found an increase of 44%, year on year, in the number of UK North Sea fields starting to produce oil, the highest number since 2008, when 16 fields were brought on-stream.

The report for 2013, which detailed activity across north-west Europe, was compiled by Deloitte’s Petroleum Services Group (PSG).

The increase is said to have coincided with a 28% drop in exploration and appraisal drilling on the UK Continental Shelf (UKCS).

The report into offshore activity revealed that as a number of operators focused on development activity, the number of fields which began producing oil and gas in the UK hit its highest level for five years in 2013.

"In 2013, 13 fields were brought on-stream and 84% were eligible for tax allowances."

In 2013, 13 fields were brought on-stream and 84% were eligible for tax allowances. However, a total of only 47 exploration and appraisal wells were drilled on the UKCS, compared with 65 in 2012, marking a 28% decrease.

The Norwegian Continental Shelf (NCS) also witnessed a rise of 41% in drilling activity during the period.

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Deloitte PSG managing director Graham Sadler said: "The North Sea industry is complex and companies operating in there have to consider many factors.

"Despite the high oil price, margins are tight and the drop in drilling during 2013 most likely reflects the increased costs of operating."

With the launch of the 28th licensing round on 24 January 2014, Deloitte PSG expects to see continued interest in the offshore sector.

Deloitte Aberdeen energy partner Graham Hollis said: "The rise in field start-ups over the last year and increased interest in licensing rounds are positive indicators for the future of the North Sea."

Energy