The UK oil and gas regulator Oil and Gas Authority (OGA) has offered for award 113 license areas over 259 blocks or part-blocks to 65 companies in the 32nd Offshore Licensing Round.
The round offered blocks in mature, producing areas close to existing infrastructure, under the flexible terms of the Innovate Licence.
According to the OGA, this enables applicants to define a license duration and phasing that will allow them to execute the optimal work program. The majority of the licenses will enter the Initial Term (Phase A or Phase B exploration stage), and 16 of the awards are for licenses that will proceed straight to Second Term, either for potential developments, or re-developments of fields where production had ceased and the acreage had been relinquished.
Taking a pause
The OGA said that, following recent successful annual licensing rounds, as previously announced, it is taking a temporary pause from annual license round activity and will not run a licensing round in what would have been the 2020/21 period.
"This will allow relinquishments to take place so more coherent areas may be reoffered in future, giving industry time to deliver on work commitments in the existing portfolio of licenses."
"Industry is encouraged to use the pause to acquire data and carry out studies in preparation for the next round. The OGA will engage with industry on the timing and nature of the next offshore licensing round," the regulator said.
"Government forecasts point to oil and gas remaining an important part of our energy mix for the foreseeable future, as we move towards net-zero, as the UK 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," OGA added.
"The OGA is implementing a program to integrate net-zero considerations into its core business, including refreshing its Strategy. Licenses awarded in this 32nd Offshore Licensing Round are expected to be stewarded under this new strategy."