The UK's Oil and Gas Authority is awarding 123 licenses over 229 offshore blocks in a licensing round it said could help "transform" lackluster levels of oil and gas exploration drilling.
The 30th offshore round, mainly focused on previously explored or "mature" areas of the North Sea, has resulted in awards to a broad mix of 61 major companies and independents, the OGA said in a statement.
The number of licenses was less than the last licensing round to focus on mature areas, the 28th round, but was declared a success by the OGA as it produced firm commitments to drill eight exploration or appraisal wells, carry out nine 3D seismic surveys and, it said, could unlock a dozen undeveloped discoveries previously considered too small or far from pipelines.
UK drilling activity has slumped in recent years, with the number of wells drilled annually around half the number in the first decade of the 21st century; last year 14 exploration and nine appraisal wells were initiated. However some in the industry argue that better seismic data is already improving the targeting of wells.
The latest round will help access around 20% of already-discovered oil and gas resources totaling 1.5 billion barrels of oil equivalent that were previously considered too small or remote from infrastructure to develop, the OGA said. It could also help develop a further 3.6 billion boe of exploration "prospectivity," it said, citing industry estimates.
"The UK continental shelf is back. Big questions facing the basin have been answered in this round. Exploration is very much alive with lots of prospects generated and new wells to be drilled. The results show a great diversity of active players from super-majors to new entrants," OGA chief executive Andy Samuel said.
UK oil production has stabilized at around 1 million b/d after falling by about two thirds since the turn of the millennium, but is expected to resume falling in the 2020s.
Among the recipients, an optimistic note was struck by Norway's state-controlled Equinor, previously named Statoil, which was awarded nine licenses.
"We believe the UK continental shelf is under-explored and anticipate that there are new discoveries yet to be made that can add value to our business and provide resources for new developments," Equinor vice president for UK exploration Jenny Morris said in a statement.
