Liz Truss is to unveil a new swathe of North Sea licences, according to a news report, in an effort to boost domestic oil and gas production.
The announcement could come as soon as today, Reuters reported, as the new prime minister is due to outline a £130bn support package to tackle the cost of living crisis.
Citing unnamed government sources, the news agency said that the exact number of new licences to be announced is still to be confirmed, though one source said it could be as many as 130.
Liz Truss previously said she would dish out more than 100 new North Sea licences if she became prime minister.
© HOC/UNPIXSA new round has been expected in the Autumn, with new areas subject to checkpoint tests to ensure they are in-keeping with the UK’s climate change commitments.
Such a round would not offer any short-term relief to energy bills due to the typical 5-10 year period between exploration and first oil production, though it would be part of a wider drive on UK energy security.
The UK’s last offshore licensing round was in 2020.
Support package
It comes as Liz Truss is to set out her plan for a £130 billion cost-of-living crisis bailout later today.
The new prime minister is expected to announce measures that would freeze household bills at about £2,500 a year until 2024, and issue support for businesses.
On Wednesday, during her first Prime Minister’s Questions, Truss ruled out extending a windfall tax on oil and gas operators to pay for that support.
“What we need to do is increase our energy supplies long-term, and that is why we will open up supply in the North Sea,” she said in the House of Commons.
On the possibility of an extension, she said: “I am against a windfall tax. I believe it is the wrong thing to be putting companies off investing in the UK, just when we need to be growing the economy.”
It leaves questions on how the package will be funded, with further borrowing adding to the UK’s £2.3 trillion national debt – driving the budget deficit.
Fracking
Ms Truss is also expected to announce an immediate end to the pause of fracking in England as part of her push for energy security.
This policy change does not apply in Scotland. Fracking can only happen here if licences are issued by the Scottish Government and we don't intend to issue any licences. https://t.co/RNznpoI8gh
— Michael Matheson MSP (@MathesonMichael) September 7, 2022
The practice remains banned in Scotland, where there will be no change to policy.
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