The North Sea Transition Authority (NSTA) has approved a roughly six-month extension to the second term of the P2170 Verbier license, aligning it with the duration of the P2498 Buchan Horst (Buchan) license as work continues on the Greater Buchan Area (GBA) development by operator NEO NEXT+ Energy and its partners Serica Energy and Jersey Oil & Gas.
The second term of the P2170 license has been extended to February 28, 2027, matching the corresponding term of the P2498 Buchan license. Jersey Oil said the alignment reflects the NSTA's objective of progressing an integrated area plan centered on a phased development led by the Buchan field.
Under the UK offshore licensing regime, the second term of a license is the period during which licensees are required to obtain approval for a field development plan before moving into the third term, which covers field development and production.
According to Jersey Oil, it plans to request an extension to the second term of the Buchan license later this year, with the application incorporating an overall development schedule and a further extension request for the P2170 license.
The company also said the reassessment of the Buchan development has continued following a slowdown in project activities, with the joint venture reviewing alternative production solutions in addition to the previously proposed redeployment of the Western Isles floating production, storage and offloading (FPSO) vessel outlined in the draft field development plan submitted to the NSTA.
Work on evaluating the wider Greater Buchan Area, including opportunities to connect nearby third-party resources to a Buchan-led production hub, is expected to continue into 2027, with the joint venture preparing a work plan and budget to support project progression and licence extensions.
"We are pleased to receive a licence extension on our existing Verbier licence, which now aligns the timing of both of our GBA licences, as we continue to work on engineering the optimal development solution for the area. As we have always highlighted, there is an exciting opportunity to unlock the resources across the area through the development of a Buchan-led production hub.
"We continue to urge the government to work constructively with industry on critical oil and gas development approvals and bring an early end to the Energy Profits Levy, which has unquestionably led to a significant slowdown in investment activity. The extended approval processes for developments that the UK's regulatory landscape has created presents a complicated backdrop for progressing key projects.
“With hydrocarbons continuing to account for around 75% of total energy usage in the UK, we believe that homegrown energy should always be prioritised over imports and we are encouraged that there are early indications following the recent cabinet changes of potential support for our domestic industry. This support will only work through delivery of the fiscal and regulatory reforms required to unlock long term investment, protect jobs, strengthen energy security and support the energy transition,” said Andrew Benitz, CEO of Jersey Oil & Gas.
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