More than one hundred applications have been received for the UK’s 33rd offshore oil and gas licensing round, according to the North Sea Transition Authority (NTSA) on Jan. 17.
The round, which closed last week, attracted a total of 115 bids across 258 blocks and part-blocks, from a total of 76 companies.
The process, which will provide a significant boost to the UK’s energy security, opened on 7th October, 2022 and offered acreage across the North Sea.
It included four priority areas, which have known hydrocarbons (oil and gas), in which there was very keen interest and could see production in as little as 18 months.
The bids will now be carefully studied, with a view to awarding licenses quickly and supporting licensees to go into production as soon as appropriate. There are several necessary consents after licensing and before production to ensure these developments are also in line with net zero.
An internal analysis by the NSTA shows that the average time between the dates of recent discoveries and first production has been close to five years. It is hoped that, since they consist of existing discoveries, the priority cluster areas can go into production in an even shorter time.
Dr. Nick Richardson, NSTA Head of Exploration and New Ventures, said, “We have seen a strong response from the industry to the Round, which has exceeded application levels compared to previous rounds. We will now be working hard to analyze the applications with a view to awarding the first licenses from the second quarter of 2023.”
Supporting The UK’s Energy Security
The round is a key part of the NSTA’s drive to support UK energy security, which also includes licensing the Rough gas storage facility, and encouraging operators to look at reopening closed wells.
Oil and gas currently contribute around three-quarters of domestic energy needs. Official forecasts show that, even as demand decreases, they will continue to play a role.
As we transition, maintaining a clean domestic supply to meet that demand can support energy security, jobs, and the UK’s world-class supply chain.
Energy and Climate Minister Graham Stuart said, “Putin’s illegal invasion of Ukraine has led to volatile global energy markets. It’s fantastic to see such interest from industry in this round, with the awarded licenses set to play an important role in boosting domestic energy production and securing the UK’s long-term energy security of supply.”
Reducing Greenhouse Gas Emissions
The drive to reach net zero greenhouse gas emissions by 2050 supports the drive for energy security. New developments tend to have lower emissions than older fields, which can contribute to reducing average production emissions. Consuming gas from the North Sea also reduces the need to consume LNG from elsewhere which has around double the carbon footprint.
Production emissions have decreased by more than a fifth between 2018 and 2021. Projections indicate the sector is on track to meet reduction targets of 10% by 2025 and 25% by 2027 – agreed in the North Sea Transition Deal in 2021.
Since February last year, NSTA interventions have prevented the lifetime emission of 1.4 million tonnes of CO2e, equivalent to taking more than 500,000 cars off the road for a year.
Source: Worldoil.com
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