Web Alert: UK OGA announces 30th Offshore Licensing Round Awards
News & Insights 6 June 2018
On 23 May 2018 the Oil and Gas Authority announced that 123 licences are being offered for award over 229 blocks or part blocks on the UK Continental Shelf.
On 23 May 2018 the Oil and Gas Authority (OGA) announced that 123 licences are being offered for award over 229 blocks or part blocks on the UK Continental Shelf (UKCS), as part of the 30th Offshore Licensing Round. A total of 26,659 km2 has been offered for award and if the offers are taken up, the additional area under licence will be an increase of 50%. A key objective of the OGA is to revitalise exploration and production on the UKCS. The award of these licences to 61 companies which includes oil majors as well as newer companies demonstrates that there is still a keen interest in oil/gas activity on the UKCS.
The new commitments include eight firm exploration or appraisal wells, nine firm new 3D seismic surveys and 14 licences progressing straight to field development planning. In addition, this licensing round looked at “unsanctioned” projects (i.e. “stranded” undeveloped discoveries). The OGA stated that 13 of these projects/discoveries which in the past have been viewed as being too small and technically too challenging, are now on firm track to being developed, bringing in an extra 330 million barrels of oil.
The OGA declared the 30th Licensing Round a success and that the interest shown by operators keen to participate in the exploitation of the UK’s oil and gas resources is encouraging given the recent competitive and challenging market.