Next UK Offshore Licence Round launched

Published 27.01.2010 15:18:37 by John Bradbury

Britain's next offshore licensing round has been launched by Energy Minister Lord Hunt with the first round since 1998 offering acreage in areas all around the UK.

Launching the UK's 26th Offshore Round today Lord Hunt said the new round will help to realise the potential of the estimated 20 Bn barrels of oil equivalent which have still to be found in UK waters.

“This record-breaking 26th Round includes areas of the Continental Shelf not as yet explored, and will provide a new boost to activity in the basin,” Lord Hunt declared today.

Blocks on offer in the 26th Round include those previously licensed and relinquished, and blocks re-offered under the Pilot Fallow Initiative where no significant exploration activity has taken place for at least three years.

Included in the round are blocks offered in the UK's first offshore licensing round 46 years ago back in 1964, which have since been relinquished.

However UK maritime territory west of Rockall, in the Atlantic Ocean, areas in the Moray Firth sector of the North Sea, and in Cardigan Bay off Wales have been excluded from the 26th Round.

Lord Hunt was in Fife visiting an oil and gas fabrication plant as the announcement was made today.

Offshore oil and gas was set for a further boost today with the expected announcement from Prime Minister Gordon Brown of an extension to the field allowances tax regime to boost field development economics.

In the government's pre-budget report last year the field allowance scheme was extended to help costs on high-pressure and high temperature fields, and more recently members of the UK industry
within Oil and Gas UK have been lobbying for the field allowance scheme to be extended to fields in the West of Shetlands – which has long been seen as the next major development province for the UK offshore sector.

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