The UK's offhsore regulator, the Oil and Gas Authority (OGA), has launched the 29th Offshore Licensing Round, with more than 1200 blocks on offer.
The latest round has been set out to support the OGA’s objective of maximizing economic recovery, or MER, from the UK Continental Shelf (UKCS). It includes a number of frontier areas of the UKCS, some of which were part of last year’s UK Government funded seismic campaign.
The £20 million seismic program targeted under explored areas of the UKCS and improved the previously sparse data coverage in the Rockall Trough and Mid-North Sea High regions.
The data packages were downloaded more than 3000 times after being made freely available to industry in April 2016 as part of the OGA’s wider plan to revitalise exploration.
The 29th Round also marks the launch of the new Innovate License concept. This offers a "flexible and pragmatic" approach to licensing which was developed by an industry task group set up by the MER UK Exploration Board. The new approach will allow licensees to work with OGA to design an optimal work programme. This enables more appropriate phasing of activity, rental fees and competency tests and implements a stage-gate process for better monitoring of progress than the previous licensing regime.
The latest round follows on from the 28th Round, held in 2015. Companies have until 2pm on 26 October 2016 to apply for blocks on offer in the 29th Round.
Andy Samuel, CEO of the OGA, said: “Since the OGA was established, we have worked very closely with government and industry with the aim of revitalising exploration. We recognise that market conditions are currently very difficult but nevertheless we have a shared goal of making the basin as attractive as possible for exploration. We’ve listened to industry feedback and have introduced more flexibility in the licensing regime and opened up potential new areas for licensing.
“The £20 million Government-funded seismic acquisition programme sparked interest in the Rockall Trough and Mid-North Sea High areas and this licensing round now makes these under-explored frontiers available.
“The combination of, for the first time, freely available seismic data and the flexible Innovate Licence is a compelling package and the result of many months of collaboration between the OGA and industry to stimulate further drilling and maximise economic recovery of the UK’s oil and gas resources.”
Read more in the August issue of OE.