A total of 76 companies submitted an aggregate 115 bids across 258 blocks and part-blocks in the UK’s 33rd offshore oil and gas licensing round, said the North Sea Transition Authority (NSTA).
PRODUCTION
Offered acreage across the North Sea includes four priority areas, which have known oil and gas, in which there was “very keen interest and could see production in as little as 18 months”.
NSTA said it aimed to award licences quickly and support licensees to go into production as soon as appropriate, following necessary consents.
“Internal analysis by the North Sea Transition Authority (NSTA) shows that the average time between the dates of recent discoveries and first production has been close to five years, and it is hoped that, since they consist of existing discoveries, the priority cluster areas can go into production in an even shorter time.”
The round attracted similar interest to the 32nd Licensing Round in 2019 which received 104 applications from 245 blocks and part-blocks.
In 2019, the regulator offered a total of 768 blocks and part-blocks compared with 931 this year.
ENERGY SECURITY
The 33rd licensing round is a key part of the NSTA’s drive to support UK energy security, which also includes licensing the Rough gas storage facility, and encouraging operators to look at reopening closed wells.
“Oil and gas currently contribute around three quarters of domestic energy needs and official forecasts show that, even as demand is reduced, they will continue to play a role.
“As we transition, maintaining a clean domestic supply to meet that demand can support energy security, jobs, and the UK’s world class supply chain.”