Fossil Energy – Licences
North Sea production has received a significant boost today (30 October) with the offer of 27 new licences in areas prioritised because they have the potential to go into production more quickly than others.
In addition to the 27 licences, six more blocks, which were also ready to be offered, have been merged into five existing licences.
All of the 258 Blocks which have been applied for have been through the initial Habitat Regulation Assessment (HRA) and the blocks being awarded today have been identified as not requiring further assessment.
These licences in the Central and Northern North Sea, and West of Shetland were awarded first to let operators press ahead with their plans to explore and develop oil and gas resources. In recent years, the average time from licence award to production is around five years.
The 33rd Oil and Gas Licensing Round was launched on 7 October 2022 with 931 blocks and part-blocks made available for application. In total, the North Sea Transition Authority (NSTA) received 115 applications from 76 companies for 258 blocks/part-blocks when the application window closed on 12 January 2023.
Today’s announcement is part of the NSTA’s wider efforts to support the UK’s energy security options, which includes the licensing of offshore gas stores and engagement with industry on opportunities to reopen closed wells.
There are currently 284 offshore fields in production in the UK North Sea and an estimated 5.25bn boe in total projected production to 2050.
Oil and gas currently contribute around three quarters of domestic energy needs and official forecasts show that, as we transition, they will continue to play a role in our energy mix for decades to come.
Consideration of other marine users is taken into consideration throughout project lifecycles, including at licence award and stewardship process stages. Developing a site typically requires additional consents, including from the Department of Energy Security and Net Zero, and the NSTA works closely with government, regulators, and other bodies such as The Crown Estate and Crown Estate Scotland to manage this process and to identify and mitigate as appropriate important spatial co-location considerations.
A recommendation for the remaining 203 blocks will be made once the Habitat Regulation Assessment Further Appropriate Assessment process has been completed.
