UK Offshore Licensing Rounds attract attention and the government settled into a routine of offering ‘car boot sales’ and then saying that the latest offering has attracted even greater interest than before.
And so, when energy minister for the time being, Matthew Hancock, yesterday took the wraps off who is being provisionally offered what is the 28th Round, the predictable words were trotted out: “This successful licensing round, which is on track to be one of biggest rounds ever in five decades, is a boost for the UK economy and shows that our long-term economic plan is working.”
How come certain big American brands are looking to exit and are virtually absent as bidders? How come practically everything on the UKCS is for sale; in large measure because of a fiscal regime long past its sell-by date and the penchant for Treasury to treat the North Sea as a milch cow?
That said, there is quite a bit of interest as companies look to the future.
Indeed there are some aspects of the 28th Round that I find interesting.
Take for example, geophysical TGS (full name TGS-Nopec) seeking an interest just a few miles off the coast twixt Aberdeen and Montrose) in the northern portion of Quadrant 26, edging into 27.
I’m much encouraged to see Chrysaor and particularly Total reinforcing their West of Shetland sector positions, especially the latter.
But these are the only two companies obviously seeking to build their WoS positions further as licence operators, unless DECC is holding something up its sleeve.
I’m even more intrigued to see Austrian company OMV preparing to take sizeable positions to the west of the Hebrides.
Statoil’s another company really going for it in a big way, with a lot more Northern North Sea acreage being offered by DECC.
On the other hand, the Central North Sea is attracting every man and his dog.
Down in the Southern North Sea (SNS), I’m interested to see interest in Quads 41 and 42 growing, notably 42 where there was a significant seismic shoot a couple of years ago and where the Breagh gas field was brought onstream just over a year ago.
This is Carboniferous acreage and the level of interest tells be that the geology is finally coming into vogue. Is a rebirth in prospect for the SNS? … well, just perhaps.
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