In a press release posted on its web site just lately, the North Sea Transition Authority (NSTA) revealed that it has provided an additional 31 licenses within the newest part of the thirty third oil and fuel licensing spherical.
“A complete of 82 affords to 50 corporations have now been made within the spherical, which attracted 115 bids from 76 corporations throughout 257 blocks and part-blocks,” the NSTA famous within the assertion, including that the licenses provided within the spherical can be anticipated so as to add an estimated 600 million barrels of oil equal (MMBoe) as much as 2060, or 545 MMBoe by 2050.
The primary tranche provided 27 licenses in October 2023 and the second provided 24 licenses in January 2024, the assertion highlighted. The 31 affords within the third tranche are made up of 29 new licenses and two merges, the NSTA outlined within the assertion.
“Of the 29 new licenses, 23 are Preliminary Time period Part A or B, two will likely be Preliminary Time period Part C (agency wells), and the remaining 4 will go straight to Second Time period, that means they’ll theoretically go into manufacturing extra rapidly,” the NSTA added.
Part A is a interval for finishing up geotechnical research and geophysical knowledge reprocessing, Part B is a interval for enterprise seismic surveys and buying different geophysical knowledge, and Part C is for drilling, the NSTA mentioned within the assertion.
“The variety of awards within the present spherical are broadly much like the latest predecessors,” the NSTA highlighted within the assertion.
“The thirty second Offshore Licensing Spherical provided 113 licenses over 260 blocks or part-blocks to 65 corporations, the thirty first Spherical, which targeted on frontier areas, provided 37 areas over 141 blocks or part-blocks to 30 corporations, and the thirtieth Spherical provided 123 licenses over 229 blocks or part-blocks to 61 corporations,” it added.
In its assertion, the NSTA described the North Sea as an vital useful resource for power safety and web zero supply.
“It’s important that sectors collaborate to make sure these programs can co-exist,” the NSTA warned.
“Following discussions with our companions in The Crown Property and Crown Property Scotland, we now have launched a brand new clause for overlapping oil and fuel licenses and wind leases for the primary time,” it added.
“This would be the foremost business mechanism for these licenses to resolve spatial overlaps and to help co-existence of those vital industries,” it continued.
“Additional consideration is being given to a small variety of remaining purposes and some extra licenses could also be provided at a later date,” it went on to state.
Commenting on the NSTA’s newest license provide, trade physique Offshore Energies UK (OEUK) mentioned the event strengthens power safety and enterprise confidence throughout all sectors because the growth into wind, hydrogen, and carbon seize and storage accelerates.
“The licenses are mainly for fuel extraction from the southern North Sea, with the potential to come back on stream to energy and warmth the UK’s companies and houses inside the subsequent 5 years,” OEUK famous in a press release despatched to Rigzone.
“They’ll make the UK much less reliant on imported fuel, which the NSTA has proven to be extra carbon intensive,” it added.
“This implies the licenses will assist to decrease the nation’s carbon footprint because the trade works to construct a beautiful funding surroundings that may allow a homegrown power transition and kickstart financial development,” it went on to state.
OEUK highlighted that the 31 licenses within the third tranche have been provided “after rigorous environmental checks”. It additionally identified that the trade helps greater than 200,000 jobs throughout the UK.
“New oil and fuel licenses profit each sector within the UK,” OEUK CEO David Whitehouse mentioned within the assertion.
“They’ll assist to carry safe provides of homegrown fuel into our grid, decreasing our reliance on extra carbon intensive imports from abroad. These licenses will assist to guard jobs and energy and warmth the nation’s corporations and houses as we construct the following technology of low carbon infrastructure right here within the UK,” he added.
“On this normal election yr, we face a alternative: we will construct a homegrown power transition and kickstart financial development by backing our individuals, our offshore corporations, and our world class provide chain, or we will import much more power and fail to develop our new wind, hydrogen and carbon seize industries,” he continued.
“Our power safety, financial development, and hundreds of jobs in virtually each parliamentary constituency up and down the UK are at stake,” Whitehouse warned.
Within the assertion, Whitehouse mentioned “all of us acknowledge that our power combine should change, and our sector is ramping up renewables and accelerating the drive to web zero”.
“However this journey will take time. In the meantime our North Sea basin is of course declining. We now have over 280 oil and fuel fields however by the top of the last decade 180 of them can have stopped producing,” he added.
“We want the churn of licenses for an orderly transition that helps jobs and communities throughout the nation and meets our power wants,” Whitehouse said.
OEUK highlighted in its assertion that it has beforehand warned that, with out contemporary funding, the UK will likely be reliant on oil and fuel imports for 80 % of its wants by 2030. Round 75 % of the UK’s complete power comes from oil and fuel, in line with OEUK’s assertion.
To contact the writer, electronic mail andreas.exarheas@rigzone.com