Wednesday 14 November 2018

The United Kingdom’s latest offshore licensing round has attracted 36 applications covering 164 blocks in frontier areas of the UK Continental Shelf (UKCS). A strong and diverse set of applications were received from 35 companies ranging from multinationals to microbusinesses.

The 31st Licensing Round, which closed on Wednesday 7th November, offered significant opportunities to acquire acreage across the UKCS’s extensive frontier areas, including the Atlantic Margin, East Shetland Platform, Mid North Sea High, and English Channel, with an aggregate area exceeding 370,000 km2.

The OGA will now commence its technical evaluation of applications, and intends to offer awards to successful applicants as early as possible during Q2 2019.

Attention will now turn to the 31st Supplementary Round in the Greater Buchan Area, scheduled to be launched in Q1 2019, which will provide an opportunity to develop and explore for a cluster of opportunities in a prime area of the Outer Moray Firth. To support this effort, the OGA will be releasing a package of supporting data, and is encouraging companies to partner up and collaborate in an Area Plan approach to maximise value from the estimated 150-300 million barrels of oil equivalent (MMboe) within this area.

The OGA has a long-term plan to offer regular licensing opportunities to industry with annual rounds, alternating between mature and frontier areas. The next mature licensing round is scheduled to be launched in mid-2019, and will be supported by the UK’s successful flexible licensing regime.