A record number of UK independent oil companies will be granted licences to explore the North Sea today.
About 52 new licences will be approved this morning, bringing the total 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.
Last night the UK Government underlined its commitment to “maximise resources available in the North Sea in order to boost energy security, revenues and jobs and support the growth of the oil and gas industry”.
Energy Minister Michael Fallon said the coalition is working “closely” with industry to put in place the right fiscal and regulatory incentives in order to encourage more exploration by smaller independent companies.
“The level of interest in this round demonstrates the continuing attractiveness of the UK’s oil and resources and licensing system,” he said.
“The UK’s oil and gas industry is of strategic national importance. Some 20 billion more barrels of oil and gas could be produced, and it is vital that we maximise the opportunities available both in the North Sea and onshore to boost growth, energy security and jobs.
“Government will continue to support exploration in the sector.
“We expect considerable interest from developers in the 14th onshore licence round, which we plan to launch next year.
“We also intend to launch a new offshore round – our 28th – early in the new year.”
Gov-ernment has already introduced fiscal incentives for offshore exploration, including increasing the size and scope of the small field allowance.
Sir Ian Wood recently published his interim proposals for the future of the industry, including a number of which could contribute to improving the investment climate for independents.
These include improving third party access to infrastructure, promoting successful collaboration across industry including on rig sharing and deployment of new technologies, and resolving commercial disputes more quickly.
For full details of where the licences have been granted, visit Energyvoice.com