UK Opens 27th Licensing Round

The UK government has today launched the 27th round of offshore oil and gas licensing in the UK North Sea. The launch will put 2,800 offshore blocks on offer to energy companies.

"I am pleased to inform the House that I am today inviting applications for petroleum licences for unlicensed seaward blocks which will form the 27th round of offshore petroleum licensing," Energy Minister Charles Hendry said in a ministerial statement.

"Supporting around 350,000 jobs and spending around £14 billion a year, the UK oil and gas industry plays a vital role in the UK economy and in meeting our energy needs.  Indigenous oil and gas production supplies the equivalent of about one half of the UK’s primary energy demand. It is vital that we continue to do all we can to maximise economic recovery of indigenous hydrocarbon reserves.

"The licensing of new areas forms an essential part of this process enabling the exploration necessary to ensure we tap into, and fully realise, our remaining reserves – which could equate to around 20 billion barrels or perhaps more."

The new round of licensing will close on 1 May this year. The 27th round will follow the United Kingdom's largest licensing round since licensing began in 1964. Last year, 190 licences were issued for offshore exploration.

The Department of Energy and Climate Change (DECC) will also apply a screening process to the licences, to ensure that any work will not have an impact on any nature conservation sites. 

The screening is required under the provisions of the Offshore Petroleum Activities (Conservation of Habitats) Regulations, 2001 which implement the "Habitats Directive".