German North Sea rocket launch plans prompt UK oil sector response: spokesperson

The UK North Sea oil and gas sector is engaging with regulatory authorities on plans by a German commercial alliance to begin suborbital rocket launches over British waters on a test basis, reflecting the increasing complexity of activity in Europe's largest hydrocarbons basin.

A spokesperson for the UK's Civil Aviation Authority confirmed it was making preparations for an airspace closure and establishment of a "temporary Danger Area" measuring some 50 km by 50 km -- believed to be in the center of the North Sea, just south of major UK and Norwegian oil facilities, but designed to avoid over-flying such facilities.

The potential start of rocket launches from a barge in Germany's Exclusive Economic Zone underlines the growing range of industry in the region and associated regulatory challenges -- including from an emerging commercial rocketry sector, and from possible launches over areas dense with oil and gas activity.

The North Sea produces nearly 3 million b/d of crude and meets almost half of UK gas needs, while hosting an increasing number of windfarm and carbon storage projects, which can sometimes conflict – BP and Danish wind farm developer Orsted had to resolve how the UK major will monitor CO2 to be stored under a proposed wind farm, Hornsea 4.

There is uncertainty over the timing of the test launches by the Bremen-based German Offshore Spaceport Alliance, which brings together space flight company OHB and a variety of industry partners, aiming to eventually launch small payloads of up to a ton into polar and "sun-synchronous" orbits, according to materials seen by S&P Global Commodity Insights.

It initially plans to launch from the northwestern corner of Germany's Exclusive Economic Zone, around 40 km south of the Aker BP-operated Valhall field in Norwegian waters, with the rockets flying westward -- avoiding Norwegian airspace -- to splash down in the UK EEZ, according to documents lodged with UK regulator the Marine Management Organisation.

An initial plan envisaged four rockets being launched between June 18 and June 29, according to a slide presentation by the Alliance first shown at an International Civil Aviation Organization event in May.

However, a consultation being undertaken by the Marine Management Organisation was not yet complete as of June 25, the MMO told S&P Global Commodity Insights, and it is thought the timeline may have slipped.

The UK's Maritime and Coastguard Agency has contributed to the consultation, with its response to be published in due course, a Maritime and Coastguard Agency spokesperson said.

For the oil and gas sector -- which the Alliance has contacted as part of the regulatory process -- a spokesperson for Offshore Energies UK said: "Industry is engaged with the relevant authorities and our members, and [we] continue to look out for the latest information."

Neither the German Offshore Spaceport Alliance nor OHB responded to multiple requests for comment.

Growth industry

Whatever the German project's prospects, rocket launches may be something Europe's oil and gas sector has to get to grips with as rival schemes progress, including launches from the Shetland Islands -- the UK government-backed SaxaVord project received Civil Aviation Authority approval last year -- and from northern Norway.

Norway's Offshore Norge oil industry group, asked about the German project's stated goal of eventual launches northward toward the Arctic, over denser areas of industry activity, said it only had "second- and third-hand information."

"We assume that operations of this type are carried out in cooperation with Norwegian authorities and stakeholders," an Offshore Norge spokesperson said.

Norway's Gassco, which has a subsea pipeline a few kilometers from the German launch site, did not respond to a request for comment. ConocoPhillips, operator of the Ekofisk crude facilities that lie 70 km from the proposed launch site, declined to comment, while Aker BP did not respond to a request for comment. Germany's Wintershall Dea, which has facilities 35 km to the east, said it had not been consulted.

The Platts Dated Brent benchmark was assessed at $87.12/b on June 24, up 10 cents on the day.