The North Sea Transition Authority (NSTA) has announced the allocation of 24 licenses in the second tranche of the U.K.’s 33rd oil and gas licensing round, involving 17 different companies, including industry giants such as Shell, Equinor, BP, and TotalEnergies.
Unveiled on January 31, these licenses cover 74 blocks and part-blocks in strategic areas such as the Central North Sea, Northern North Sea, and West of Shetland.
This round of awards, following the initial 27 licenses granted in October 2023, aims to bolster job security and stimulate economic benefits locally and beyond, the NSTA said. It anticipates additional offers in the upcoming months, bringing the total to 51.
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The outstanding blocks, predominantly in the Southern North Sea and East Irish Sea, will be tendered once environmental evaluations, including the Habitat Regulation Assessment (HRA) Appropriate Assessments, are finalized by the Offshore Petroleum Regulator for Environment and Decommissioning (OPRED).
An internal analysis by NSTA reveals that the average time from licensing to first production is approximately five years, indicating that licenses awarded now could contribute to production before the end of the decade.
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In addition to conventional oil and gas, NSTA’s focus on carbon storage, with 21 licenses awarded in 2023, and hydrogen, where NSTA serves as the offshore transport and storage regulator, aligns with broader efforts to achieve net-zero emissions by 2050.
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The U.K.’s 33rd licensing round commenced in October 2022, offering more than 900 blocks. The application window closed in January 2023, resulting in 115 bids from 76 companies, indicating sustained industry interest in exploring the UK Continental Shelf.
Graham Stuart, Minister for Energy Security and Net Zero, stated, “These new licenses 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 (US$20.3 billion) each year.”
