Department of Energy and Climate Change
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North Sea still open for business
More licences than ever before are being offered to companies to extract oil and gas from the North Sea, Energy Minister Mike O'Brien announced today.
The announcement will help the UK to make the most of its own home grown supplies of energy.
As part of the Department of Energy and Climate Change' s 25th offshore oil and gas licensing round, 171 new licences are being offered to 100 companies covering 257 blocks of the North Sea. Energy and Climate
Change Minister Mike O'Brien said:
"We are now seeing record interest from companies wishing to exploit the UK's considerable oil and gas resources in the North Sea. Whilst there's not an endless supply of North Sea oil and gas, with up to 20 billion barrels, or more, left under the sea we can't overlook its contribution to our security of energy supply as well as to our economy.
"The oil and gas sector is one of the UK's most important industries and this latest result can only reinforce and maintain this position. While we work to develop low carbon sources of energy, oil and gas will continue to be an important source of energy for the UK. And that's why our ambition is to squeeze as much oil and gas out of the North Sea as is possible"
Following a screening exercise, it has been decided that 46 of the blocks applied for should be subject to more detailed assessments of the likely effects of oil and gas activities on certain protected nature conservation areas. A decision on whether to grant licences for these blocks will be subject to the results of the environmental assessments.
Through a joint initiative with industry, Government has been working on measures to encourage greater investment in the North Sea, which includes innovations to the licensing system, increased emphasis on brown fields stewardship and the fallow initiative. As a result we have seen high levels of interest and activity in recent years.
Notes to Editors:
1. The 25th Oil & Gas Licensing Round closed on 22nd May 2008. Full details of the awards can be viewed at: http://www.og.berr.gov.uk
2. Licence awards data:
24th Round 25th Round
Number of Licences being awarded 150 171
Traditional 79 124
Frontier 6 6
Promote 65 41
Blocks being awarded in all 246 257
No. of Companies being offered an award 104 100
Of which newcomers to UKCS 17 8
3. The UK's Oil and Gas sector currently provides 70% of the country's energy and benefits the UK balance of payments to the tune of £45 billion a year. It is by far the largest single industrial UK investor and supports over 450,000 jobs though out the economy.
4. Any licences awarded in the 25th Round will contain conditions to protect environmental interests and those of other sea users. In addition, activities carried out under the licences will be subject to a range of legislation which is designed to protect the marine environment, including legislation which implements the Environmental Impact Assessment Directive and the Habitats and Wild Birds Directives in respect of offshore oil and gas activities.
5. Following a screening assessment, 46 of the blocks applied for in the 25th Round which are close to, or in, certain Special Areas of Conservation (SACs) or Special Protection Areas (SPAs) have not been included in these awards and will be subject to "Appropriate Assessments" of their effects on these SACs and SPAs. There will be a consultation on the recommendations of the environmental assessments before any decision is made on whether to award licences for these 46 blocks.
6. The 25th licence round was covered by an SEA which concluded in 2007. DECC's present offshore SEA ,due to go to consultation in 2009, relates to a future 26th licence round.
