UK Announces 134 Licences in 28th Offshore Round

The UK government announced 134 licences covering 252 block in the 28th offshore licensing round, adding that an additional 40% could be added later on after environmental assessments.  

“The EU Habitats Directive requires that appropriate assessments be conducted where proposed activities are likely to have significant effects on any SACs (Special Areas of Conservation) and SPAs (Special Protection Areas),” UK’s Secretary of State for Energy and Climate Change Edward Davey said on Thursday.  

Despite some experts and market participants recently telling Natural Gas Europe that the 28th offshore licensing round attracted less attention than previously thought, the number of offers is amongst the highest recorded in the last 10 years.

Norway-based Statoil was one of the selected companies. It has been awarded interests in 12 new licences, 9 as operator.

“These awards strengthen our UK continental shelf portfolio significantly and underpin our long-term commitment as an operator in UK waters,” Erling Vågnes, senior vice president for exploration in Statoil, stated on Statoil’s website. 

Meanwhile, Davey said it is following other recommendations put forward in the report by Sir Ian Wood, announcing the appointment of Andy Samuel as Chief Executive Officer of the Oil and Gas Authority, which will be headquartered in Aberdeen.

Samuel is the former Managing Director of BG PLC’s Exploration and Production in Europe. He will begin this role in January 2015 as head of the new arm’s length body aimed at ensuring economic recovery maximisation. 

“Around 42 billion barrels of oil and gas have so far been produced from the UKCS, and around 20 billion could still be discovered. Although peak production is now behind us, we must maintain our momentum and make the most of the huge opportunity that the UKCS still represents,” Davey commented in a separate note.