New oil and gas exploration licences approved in the North Sea
The move has been welcomed by trade body OEUK but criticised by environmentalists who said the UK Government was bolstering the profits of polluters.
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Your support makes all the difference.The UK’s oil and gas regulator has awarded 24 new exploration licences to 17 separate companies in a move that has been welcomed by a trade body but condemned by climate campaigners.
It is the second tranche of the North Sea Transition Authority’s (NSTA) 33rd licensing round and follows 27 licences offered in the last allocation made in October last year.
British multinationals such as Shell and BP are among the companies which received licences in this latest round, with more expected to be confirmed in the coming months.
The 74 blocks and part-blocks offered this month are all in the Central North Sea, Northern North Sea and West of Shetland areas.
These licences have the potential to make a significant contribution to the UK in energy production and economic benefits
The remaining blocks, the majority in the Southern North Sea and East Irish Sea, will be offered when environmental evaluations have been finalised.
The 33rd licensing round opened in October 2022 with more than 900 blocks being made available.
The application window closed in January last year and 115 bids were received from 76 companies.
It is believed the offshore oil and gas industry currently supports about 200,000 jobs in the UK.
A NSTA spokesperson said: “This latest batch brings total offers so far to 51, with more to come once the appropriate environmental checks are complete.
These new licences will strengthen our energy security now and into the future
“These licences have the potential to make a significant contribution to the UK in energy production and economic benefits, and the NSTA will work alongside the licensees to help bring them into production as quickly as possible.”
Minister for Energy Security and Net Zero Graham Stuart said: “We will continue to need oil and gas over the coming decades, so it is common sense to make the most of our own resources – with domestically produced gas almost four times cleaner than importing liquefied natural gas from abroad.
“These new licences will strengthen our energy security now and into the future, while also helping boost our economy, by backing an industry that supports 200,000 jobs and is worth £16 billion each year.”
Offshore Energies UK’s (OEUK) CEO David Whitehouse said: “We all recognise that our energy mix must change and our sector is ramping up renewables and accelerating the drive to net zero.
“But this journey will take time. Meanwhile, our North Sea basin is naturally declining. We have over 280 oil and gas fields but by the end of the decade 180 of them will have stopped producing.
This shameful decision to force through another licensing round shows the UK Government has given up any pretence that they have a shred of concern about climate breakdown
“We need the churn of licences for an orderly transition that supports jobs and communities across the country and meets our energy needs.
“OEUK is working with all political parties to build an understanding of the sector’s strategic importance to the UK and help build realistic, practical plans for a homegrown energy transition with people at its heart.
“OEUK’s industry manifesto, which details how this transformation can be achieved, will be published later this month.”
But Friends of the Earth Scotland’s climate campaigner, Alex Lee, said of today’s announcement: “This shameful decision to force through another licensing round shows the UK Government has given up any pretence that they have a shred of concern about climate breakdown.
“As storms rage and temperatures soar, the UK Government is devoting its time and energy towards bolstering the obscene profits of major polluters rather than protecting the public they are meant to serve.”
“Plans for new oil and gas are impeding the transition to renewables, diverting time and resources from where it is needed. All credible climate science says that we must urgently stop burning the oil and gas that is choking our planet.
“Workers need a real transition plan that can help them shift to secure green jobs, not political stunts that aim to further lock households into a fossil fuel system that is failing to provide either security and affordability.
“Both Governments should instead be working tirelessly to move away from a fossil-fuelled energy system, which means they must reject new oil fields and hare-brained schemes to turn the North Sea into Europe’s carbon dumping ground.”