More than 5,000 km2 of North Sea exploration acreage was surrendered today as deadlines for licences hit the industry.
Five licences, including Orcadian Energy’s P2320, expired or were surrendered across the central and Southern North Sea, having been issued during the 29th offshore exploration round in 2016.
The NSTA (North Sea Transition Authority) regulator places milestones for licence activity in order to ensure development.
If these aren’t met, then the regulator can choose not to extend licences; operators cannot sit on these areas without making progress.
Peter Browning-Stamp, a geologist at Horizon Energy, noted that these areas were frontier which the (formerly-named) Oil and Gas Authority promoted using newly-acquired seismic data after a £20m UK Government investment.
Mr Browning-Stamp, who is also part of the NSTA-supported Subsuface Task Force, said it was “somewhat a dark day for frontier exploration,” especially in the Mid North Sea High area and Haupt play.
“Sadly time not available to operators, the 15th of May 2023 has brought about the eventual relinquishment of around 5200km² of licences, in one of the hottest plays in the region, with many licences containing material prospects within.
“Will these blocks ever be licenced again? Only time will tell.”
Mid-North Sea High, along with along with the Rockall Basin and East Shetland platform, was the focus of a £20 million investment from the UK Government in 2015 to deliver improved seismic data and encourage investment in these “under-explored areas”.
Once an annual occurrence, licensing on oil and gas areas offshore has severely dipped in frequency – in part due to Covid – but many argue largely due to strenuous climate pressure on the industry.
The current 33rd licensing round is the first since 2019 and due to make awards later this year.
Once operators are awarded acreage they will need to secure other consents, including, for the first time, climate compatibility checkpoints.
The NSTA had no comment.
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