UKCS Licensing Round 'A Great Success'

UKCS Licensing Round 'A Great Success'
The Oil and Gas Authority's 30th Offshore Licensing Round has been dubbed 'a great success' by Wood Mackenzie.

The Oil and Gas Authority’s (OGA) 30th Offshore Licensing Round has been dubbed “a great success” by Kevin Swann, Wood Mackenzie’s North Sea senior research analyst.

“The number of licenses, blocks and companies awarded in this round is on a par with the numbers seen in the 28th round in 2016, but more exciting this time is that 14 licenses will move straight into the field development planning stage,” Swann said in a statement sent to Rigzone.

“The UK is in desperate need of new projects to fill a development pipeline that is all but empty beyond the early 2020s, and 14 new pre-FID projects could go a long way to rectifying that,” he added.

Swann highlighted the involvement of “big” and “newer” companies in the round, stating that UK exploration interest was “strong across the corporate landscape”.

“The eight firm exploration wells among the awards, with big companies like Shell, BP, Equinor and ConocoPhillips among those set to drill, is a big vote of confidence in the UK. It shows the big players are not ready to leave UK waters yet,” Swann said.

“Newer kids on the block, like private equity-backed Chrysaor and small E&Ps IOG and i3, have committed to new exploration wells too, showing that UK exploration interest is strong across the corporate landscape,” he added.

The OGA announced Wednesday that it had offered 123 licenses, over 229 blocks or part-blocks, to 61 companies in the 30th Offshore Licensing Round.


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