The UK’s latest offshore licensing round has attracted "considerable interest" despite concerns surrounding domestic oil and gas production amid government commitments to net zero emissions by 2050, the UK Oil & Gas Authority (OGA) said on Monday.
The 32nd Offshore Licensing Round, which closed on November 12, 2019, offered acreage in the central, northern and southern portions of the North Sea as well as West of Shetland and drew 104 applications from 71 companies covering 245 blocks or part-blocks across the main producing areas of the UK Continental Shelf (UKCS), the OGA said.
“The response to the round has been very positive, exceeding the interest received for the 30th Offshore Licensing Round which was also in the more mature areas of the UKCS,” said Dr. Nick Richardson, Head of Exploration and New Ventures at the OGA.
The OGA is evaluating the 32nd round applications and expects to make awards in the second quarter of 2020.
The OGA, which said it welcomes the government’s legally binding zero emissions commitment, expressed that oil and gas will remain an important part of the UK energy mix for the foreseeable future, including under net zero scenarios, where the country is still expected to be a net importer. As such, managing the declining production and maximizing the economic recovery from the UK remains vital to meet those energy demands as long as they exist, and to reduce reliance on hydrocarbon imports, it said.
The OGA said it's unlikely that the 33rd round will take place in 2020.