Record UK North Sea oil and gas licensing round
01 November 2012
On October 25 the Department for Energy and Climate Change (DECC) announced the winners of the record-breaking 27th Licensing Round. A total of 167 new licences have been offered by DECC covering 330 North Sea blocks with a further 61 blocks under environmental assessment, confirming the high level of interest in the North Sea from investors.
A record 167 new licences were offered by DECC covering 330 North Sea blocks, with a further 61 blocks under environmental assessment, in the latest licensing round
In May, DECC announced the 27th Licensing Round had a total of 224 applications covering 418 blocks of the UK Continental Shelf, the most ever received and 37 more than the previous high received in the last licensing round.
Energy Minister John Hayes said: “Fortune has favoured the UK. Oil and gas from our waters provides around half the energy we need to heat our homes, fuel our cars and power our industry. It is the single largest industrial UK investor, supporting 440,000 jobs, and benefits the UK’s trade balance to the tune of £40 billion.
“This successful licensing round shows we are taking the right action to offer certainty and confidence to investors. Our fiscal regime is now encouraging small fields into production and our licensing regime supports new faces as well the big players to invest. Importantly, we are guaranteeing every last economic drop of oil and gas is produced for the benefit of the UK.”
DECC says more than 40 billion barrels of oil have been produced from the UK Continental Shelf with potentially another 20 billion still remaining to be exploited.