UK Reports on Bids in 32nd Licensing Round
The UK’s 32nd offshore licensing round has collected 104 bids from 71 companies, the Oil & Gas Authority (OGA) announced on December 16.
The bidders, which range from multinationals to new country entrants, filed offers for 245 blocks or part-blocks in across the North Sea and west of the Shetlands, the OGA said.
“The response to the round has been very positive, exceeding the interest received for the 30th offshore licensing round which was also in the more mature areas of the UKCS,” the OGA’s head of exploration Nick Richardson said. “We look forward to seeing how the data released in support of the round has been used to support the applications submitted.”
The UK’s 30th round, held in 2017, attracted only 96 bids from 68 companies for 239 blocks. The 31st contest last year secured only 36 offers from 35 companies, for 164 blocks.
Awards are expected in the second quarter of 2020, the OGA said, noting it would discuss the timing and nature of the next licensing round with the industry. But it is unlikely in 2020, it said.
The state agency said it supported the government’s commitment to cutting net emissions to zero by 2050, but that oil and gas would remain an important part of the UK’s energy mix.
“As such, managing the declining production and maximising the economic recovery from the UK remains vital to meet those energy demands as long as they exist, and to reduce reliance on hydrocarbon imports,” it said.