'Confidence returns' to North Sea

Drilling activity in the North Sea has risen dramatically in the past three months, according to the latest oil and gas figures released by financial consultants Deloitte.

The study said 28 exploration and appraisal wells began between April and June.

That compares to just 12 wells during the first three months of the year.

Deloitte said the figures suggested some confidence was returning to the market.

However, the increase came off the back of the lowest drilling activity levels in six years.

The firm said factors such as a more stable oil price and improving credit conditions had created improved market conditions, with the increase suggesting there was still tremendous potential in the North Sea.

However, financial markets remain volatile and Deloitte warned the industry could still see further fluctuations in the months to come.