A third and final wave of North Sea licences are expected to be awarded on Friday for the regulator’s 33rd offshore round.
The North Sea Transition Authority (NSTA) will unveil the third tranche winners of the licences Friday morning, Energy Voice understands, following earlier announcements in October and January.
This third set will focus on the Southern North Sea and East Irish Sea.
Several companies have made their bids public, including Orcadian Energy, Deltic Energy, Painted Wolf Resources and Curium Resources.
Firm rejects ‘marriage’ for licence application
One potential licence offer has already been rejected by Europa Oil and Gas (AIM: EOG).
The AIM-listed firm said it had been contacted by the NSTA on a “proposed marriage between Europa and another party for the licence” but decided not to accept.
Europa then told the NSTA that it would still reject the licence if it decided to award it to Europa in its entirety.
The firm said it “believes that its resources are better deployed on its existing assets and looking for new opportunities within its core areas of focus” such as Equatorial Guinea where it has been awarded acreage since applying for the other UK licence.
Co-location issues
It comes as The Guardian reports concern this morning about gas licences being “prioritised” over offshore wind due to the awards.
The Southern North Sea is a gas basin with major offshore wind projects planned along with carbon capture and storage (CCS) developments.
The NSTA said it “worked closely with other regulators to consider matters of co-location with offshore wind and other users”. It’s also understood licensees will need to strike an agreement with offshore wind developers before drilling.
Co-location has been an issue weighing on the regulators’ minds for years, which is addressed through forums such as those ran by the Crown Estate.
However a report from the NSTA last year found full co-location of carbon storage sites with wind farms is in many cases “impossible”.
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