Tuesday 31 December 2019

More than a hundred applications to look for oil and gas in North Sea

More than a hundred applications to look for oil and gas in North Sea

According to the Oil and Gas Authority (OGA),  the United Kingdom’s latest offshore licensing round has attracted 104 applications covering 245 blocks or part-blocks across the main producing areas of the UK Continental Shelf (UKCS). Applications were received from 71 companies ranging from multinationals to new country entrants.

The 32nd UK Offshore Licensing Round offered acreage in the Central North Sea, Northern North Sea, Southern North Sea and the West of Shetlands.

In a statement the OGA said it fully supports the energy transition and welcomes the government’s legally binding commitment to net zero emissions by 2050.

It added that it understood why there could be concern about UK domestic production of oil and gas in this context but further said:  “However, oil and gas will remain an important part of our energy mix for the foreseeable future, including under net zero scenarios, where the UK is still expected to be a net importer. As such, managing the declining production and maximising the economic recovery from the UK remains vital to meet those energy demands as long as they exist, and to reduce reliance on hydrocarbon imports.”

Dr Nick Richardson, Head of Exploration and New Ventures at the OGA, said: “The response to the round has been very positive, exceeding the interest received for the 30th Offshore Licensing Round which was also in the more mature areas of the UKCS.”

The OGA is expected to make awards in the second quarter of 2020.

Written by

Bruna Pinhoni

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