Oil & Gas Authority boss named

The Aberdeen-based OGA has been set up to operate at arm’s length of the government following recommendations made in Sir Ian Wood’s review of the UK Continental Shelf (UKCS).

“The OGA will need to work very closely with industry over the coming years and Andy’s impressive experience and the significant credibility he holds within the industry will put him in a very strong position to encourage the industry collaboration that is needed as we enter the next phase of the UKCS,” said Wood.

It is encouraging to see companies stepping away from the known basins and into deeper water

Oil & Gas UK’s Oonagh Werngren

Following Samuel’s appointment, the Department of Energy and Climate Change (DECC) yesterday launched a call for evidence asking industry for views on the governance and scope of the new regulator, the Maximising Economic Recovery UK strategy, the new regulatory powers of the Oil and Gas Authority and its sanctions regime and the cost recovery mechanism.

DECC also announced yesterday the results of the 28^th licensing round, with 134 licenses awarded.

The number of licenses was slightly down on the record-breaking 27^th licensing round, announced in 2012, where 167 licenses were awarded.

Trade body Oil & Gas UK highlighted the fact that this latest round comprised a significant number of applications for unestablished wells, and for exploration in deeper waters.

“It is interesting to note more than 60 companies applied for licences in this round and that the majority comprised smaller investors,” said Oil & Gas UK operations director Oonagh Werngren.

“Perhaps what is most telling is the nature of the work programmes that companies have committed to, with only five firm wells and four contingent wells being included. Most licences have been awarded on the basis of obtaining or reprocessing 2D and 3D seismic data. The disappointingly low number of wells highlights the need to stimulate new plays through detailed technical work, which requires measures to encourage more investment in the UKCS.”

Werngren added that it was “encouraging to see companies beginning to look seriously at frontier areas, stepping away from the known basins and into deeper water”.

Despite the majority of license applications being made by smaller investors, some of the major players were still involved in the latest licensing round.

Statoil, for example, was awarded 12 new licenses, nine of them as operator. Eleven of Statoil’s licences are in the North Sea and the remaining one is West of Hebrides. The combined size of Statoil’s new license areas constitutes almost 8,000 square kilometres.