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New licences expand BP’s presence off Shetland

New licences expand BP’s presence off Shetland

BP is to increase its presence West of Shetland after winning four new licences in the latest North Sea round.

A total of 52 new licences have been announced, bringing the number of offers of awards in the 27th round to 219 – an all-time record.

They included licences being awarded to 21 smaller independents that are new to the market – three times more than the last round.

Energy Minister Michael Fallon announced the awards yesterday – saying they demonstrated the “continuing attractiveness” of the UK Continental Shelf.

BP will continue to build on its existing West of Shetland presence after securing four offers, on the edge of its Clair field.

The company has already announced plans for a two-year appraisal programme to look at the developing a third phase of the giant field, with more than £300million earmarked for exploration work in the region.

Trevor Garlick, regional president for BP’s North Sea business, said: “The Greater Clair area is an important and exciting part of BP’s future in the North Sea. Our first phase of development on the Clair field, the Clair platform, has been producing since 2005.

“This summer we installed the jackets for the second phase of development, Clair Ridge, which will come into production in late 2016. Earlier in the year we also announced an appraisal programme for a third phase of development.

“The award of these new licence blocks will allow us, along with our partners, to explore the potential of the area close to the Clair field and opens up the possibility for further development.”

Elsewhere, Canadian firm North Sea Energy will continue its partnership with EnCounter for the Moray Firth after winning two of the licences.

The companies, which partnered for the Blofeld and Bagpuss finds in the Moray Firth, have won licences 19/2 and 19/3, along with a part of the 18/10 block off the North-east coast of Scotland.

Nexen will shoot and reprocess 3D seismic data for its win in block 19, where it already operates on the Buzzard field.

Statoil has won the licence for two blocks to obtain 3D data near its planned Mariner development, on the far edge of the continental shelf, while Maersk and Endeavour have also taken licences far into the North Sea.

Premier Oil has taken a licence north of its interests in the Norfolk and Norfolk East blocks as it looks to replicate the c=Captain field.

Centrica were the big winners in the licensing round, picking up nine licences either by themselves or in partnership.

Oonagh Werngren, Oil and Gas UK’s operations director said: “This award demonstrates the strength of interest in the exploration and production of natural resources off the coast of the UK.

“We are particularly encouraged by the fact that 21 of these licences have been awarded to small independents who are new entrants to the market. This is three times the number of licences granted to independents last year, and highlights the strategic importance of achieving a balance between established operators and newcomers.”