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Europe: UK awards 144 exploration licences in latest offshore round

Europe: UK awards 144 exploration licences in latest offshore round

Write: Barna [2011-05-20]
p>The UK has awarded 144 exploration licenses 83 companies in its 26th offshore licensing round, the UK's Department of Energy and Climate Change said Wednesday.


The number of licenses awarded, which cover 268 blocks, is down from 192 in the previous 2008 round when 100 companies won acreage.


DECC said, however, that 45 further prospective licenses covering 99 blocks will be subject to more detailed impact assessments on the likely effects of oil and gas activities on certain protected conservation areas.


A decision on whether to grant licenses for these blocks will be subject to the results of the environmental assessments, DECC said.


The ministry had offered 2,818 blocks in the 26th round which included a number relinquished under the government's "Fallow Initiative," which aims to stimulate activity on blocks where there had been no significant activity for three years.


UK oil production peaked at about 2.6 million b/d in 1999 and is now declining by around 5% annually. With gas output peaking in 2000, the UK became a net importer of both commodities in 2006 and 2004 respectively.


The UK expects to see oil production from its aging fields in the North Sea slip to 1 million b/d within five years, down from some 1.36 million b/d in the 12 months to April 2010.


The government believes there are still around 20 billion barrels of oil equivalent to be discovered and produced from the UK North Sea.


In November 2008, the UK awarded 192 new North Sea oil and gas licenses to 100 companies in its 25th offshore licensing round.


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