Licence wins to revitalise North Sea
28 Jul 2015
The Oil and Gas Authority has announced 41 new offshore licences for exploration on the UK Continental Shelf (UKCS).
The licences are in addition to the 134 confirmed during November last year, making the 28th Offshore Licensing Round one of the biggest to date.
Despite offshore giants such as Shell, BP and ENI all being awarded licences, many smaller firms were also rewarded.
Industry, government and the OGA now need to work together to revitalise exploration activity
OGA chief executive Andy Samuel
“The UK Continental Shelf remains a world-class hydrocarbon province where significant resources and economic value remain to be realised,” said Andy Samuel, chief executive of the Oil and Gas Authority.
“The good level of interest in the 28th Round highlights the continued attractiveness of the UK’s oil and gas resources,” he said.
However, Samuel said the awarding of licences is merely the start.
“Industry, government and the OGA (Oil and Gas Authority) now need to work together to revitalise exploration activity across the basin and convert licences into successful exploration wells,” he said.
Uncertainty in the North Sea has been rising for several years, with a number of projects being put on hold and many others being scrapped altogether.
According to Oil & Gas UK’s Activity Survey 2015, only 14 wells were drilled out of the expected 25 last year and between just eight and 13 wells are expected to be drilled this year.
To maximise North Sea resources, the UK government announced a package of support in March to encourage £4 billion of additional investment designed to prolong the UKCS’s life.
Energy minister Andrea Leadsom said: “We are determined to make the most of our North Sea resources to provide secure, reliable energy for hard-working families and businesses and reduce our reliance on volatile foreign imports.”
Meanwhile, in an indication that the recent downward trend in oil and gas fortunes might be reversing, the Office for National Statistics today released figures that show a boost in oil and gas production in the North Sea.
Indeed, the figures suggest an increase by 1% in industrial output - the largest jump in almost five years.
