UK Grants Oil and Gas Licences in North Sea

Forty-six new oil and gas exploration licences have been granted for the North Sea today, British Minister for Energy, Charles Hendry has announced.

The licences, which allow companies to explore for hydrocarbons in the UK North Sea, in the 26th round of licencing in the UK. The licences are granted from the Department of Energy and Climate Change (DECC).

"Oil and gas remains crucial to the UK economy – contributing around 2 per cent to the country’s GDP," Minister Hendry said. "Our innovative licensing system continues to make the UK one of the most attractive places to do business.

"These further licenses have been subject to rigorous examination, and we are now satisfied that initial exploration can go ahead.

"These continued high levels of interest, and the award today of these licenses, gives me yet more reason to be optimistic for a prosperous 2012 for the UK oil and gas sector."

Among those reported to have availed of this round of licencing are Shell, GDF Suez, Hurricane Exploration and Wintershall Holding.

The licences granted today are in addition to 144 licences granted in October 2010. The newest licences have been granted on areas which were held back at that time "due to the need for further assessment on Special Areas of Conservation (SACs) and Special Protection Areas (SPAs)," the DECC said.