OGA awards 12 licences in the 2016 supplementary offshore licensing round

The UK Oil and Gas Authority (OGA) has offered for award 12 licences to 11 companies in the 2016 Supplementary Offshore Licensing Round, which closed for applications in March 2017. A total of 14 blocks were originally offered in response to industry nominations of areas outside of those covered by last year’s frontier 29^th Licensing Round. Locations varied across the UK Continental Shelf (UKCS), from the Southern North Sea to East of Shetland. The round offered blocks under flexible terms, enabling applicants to define a licence duration and phasing that will allow them to execute their optimal work programme. In all, 15 applications covering 11 blocks were received and the OGA has made offers of award in respect of 12 licences covering the 11 blocks. Five of the awards are for work programmes that will proceed straight to Second Term, either for potential developments, or re-developments of fields where production had ceased and the acreage had been relinquished. The remainder of the licences will enter the Initial Term (exploration stage).

Andy Samuel, OGA Chief Executive, said: ‘We’re listening to industry and are pleased to make available a number of additional, nominated areas. The strong interest in this round bodes well for the forthcoming 30th round, demonstrating the renewed attractiveness of the UKCS and the opportunity for operators to rebuild their portfolios with a mixture of exploration, development and re-development activity.’