Oil and gas exploration licences granted by the Department of Energy and Climate Change (DECC) have revealed that industry interest in developing the UK’s North Sea resources remains vibrant.
Following the positive trends of recent years, 144 licences to extract oil and gas from UK waters have been offered in the 26th licensing round. These licences cover 268 blocks, almost as many as the 303 awarded in the 25th round.
Energy Minister Charles Hendry said:
‘It’s encouraging to see the healthy level of interest there is from industry to make the most of the UK’s still substantial resources of oil and gas.
‘Whilst in the long term, we want to decarbonise our energy system, we have moved swiftly to offer these licences as we must realise the optimum value from the UK’s energy resources and ensure secure energy supplies.
‘We remain absolutely vigilant and determined to ensure that exploration in our waters is done safely and with minimal impact to the environment.’
Following a screening exercise by DECC, it has been decided that 99 further blocks (comprised in 45 prospective licences) should be subject to more detailed assessments of the likely effects of oil and gas activities on certain protected nature conservation areas. A decision on whether to grant licences for these blocks will be subject to the results of the environmental assessments.
Government will continue to work with industry through the PILOT forum to maintain investment in the North Sea. Earlier initiatives including innovation in the licensing system, a focus on brownfields stewardship and on fallow assets have helped maintain high levels of interest in recent years.