UK Government Announces 41 New Licences, 43 Blocks to ENI and Shell

The British government increased efforts to increase the attractiveness of the oil and gas business environment, announcing 41 new licences and providing fresh information about the Electricity Market Reform. 

‘The 41 new licences awarded today in addition to the 134 confirmed in late 2014 makes this one of the largest rounds in the five decades since the first licensing round took place in 1964 – a total of 175 licences covering 353 blocks’ the UK Government wrote in a note referring to the 28th Offshore Licensing Round. 

Oil majors ENI and Shell were awarded a total of four licences and 43 blocks. Italy’s ENI was awarded three licences covering 23 blocks, while Anglo-Dutch Shell received one licence to explore 10 blocks. 

“The UK Continental Shelf remains a world-class hydrocarbon province where significant resources and economic value remain to be realised. The good level of interest in the 28th Round highlights the continued attractiveness of the UK’s oil and gas resources” Andy Samuel, Chief Executive, Oil and Gas Authority, commented.  

Samuel underlined the role of the new Oil and Gas Authority, which has been officially established as an independent regulator earlier this month, to promote activity across the basin.  

“The 28th offshore licensing round comes after the Government announced a major package of support in March to encourage £4 billion of additional investment in the North Sea which will prolong the life of this vital industry” Andrea Leadsom, UK Energy Minister, added.

The Department of Energy & Climate Change (DECC) also published some documents about the Electricity Market Reform package. The Capacity Market is part of it.   

‘The Capacity Market will ensure security of electricity supply by providing a payment for reliable sources of capacity, alongside their electricity revenues, to ensure they deliver energy when needed. This will encourage the investment we need to replace older power stations and provide backup for more intermittent and inflexible low carbon generation sources’ DECC wrote on its website, presenting Capacity Market Rules and Regulations.