30 October 2012
Waveney MP Peter Aldous this week welcomes the Government’s announcement of the winners of the 27th Licensing Round which looks set to boost UK oil and gas investment.
The news follows on from the tax incentives for the oil and gas industry announced in the Budget. A total of 167 new licenses have been offered by DECC covering 330 North Sea blocks, with a further 61 blocks under environmental assessment. The winners include companies such as Apache Corporation, BG Group, Maersk, Nexen, Premier Oil, Royal Dutch Shell and Total.
Mr Aldous is of the view that North Sea oil and gas has a continuing vital role to play in the supply of the UK’s energy needs in the period leading up to the commissioning of the new nuclear power station at Sizewell and the offshore wind farms off the East Anglian coast. There is the added advantage that the skills and supply chain requirements in the oil and gas sector compliment those in the offshore wind industry.
North Sea oil and gas provides half the energy the UK needs to heat homes, fuel cars and power. It is the single largest industrial UK investor, supporting 440,000 jobs and benefits the UK’s trade balance by £40 billion. The successful licensing round is detrimental that the Government is taking the right action to offer confidence to investors.
In May DECC announced the 27th Licensing Round had a total of 224 applications covering 418 blocks of the UK Continental Shelf, the most ever received and 37 more than the previous high received in the last licensing round.
In this latest round, Apache has been offered 14 blocks in the northern part of the North Sea, where it will be required to acquire 3D seismic data. Most offers have been made in the central North Sea, where BG Group has been offered seven blocks and Shell has been offered five blocks. In the central North Sea, Maersk has been offered four blocks while Nexen has been offered 17 blocks, which includes a commitment to drill at least four wells on two of these blocks.
Premier Oil has been offered eight blocks in the central zone and Total has been offered 16 blocks in the west of the Shetland Islands. Total has also been offered four blocks in the northern North Sea and two blocks in the central North Sea. Other companies that have been made license offers include BP, Centrica, ConocoPhilips, E.ON, GDF Suez, OMV, Statoil and Tullow Oil.
Aldous commenting on the announcement said:
“The success of this licensing round is a significant step forward along the path towards sustainable investment in UK oil and gas, from which we shall see significant benefits in years to come. Moreover Lowestoft and Waveney engineering companies stand to benefit from the opportunities to tender for contracts, thereby securing and creating jobs.”
The news follows on from the tax incentives for the oil and gas industry announced in the Budget. A total of 167 new licenses have been offered by DECC covering 330 North Sea blocks, with a further 61 blocks under environmental assessment. The winners include companies such as Apache Corporation, BG Group, Maersk, Nexen, Premier Oil, Royal Dutch Shell and Total.
Mr Aldous is of the view that North Sea oil and gas has a continuing vital role to play in the supply of the UK’s energy needs in the period leading up to the commissioning of the new nuclear power station at Sizewell and the offshore wind farms off the East Anglian coast. There is the added advantage that the skills and supply chain requirements in the oil and gas sector compliment those in the offshore wind industry.
North Sea oil and gas provides half the energy the UK needs to heat homes, fuel cars and power. It is the single largest industrial UK investor, supporting 440,000 jobs and benefits the UK’s trade balance by £40 billion. The successful licensing round is detrimental that the Government is taking the right action to offer confidence to investors.
In May DECC announced the 27th Licensing Round had a total of 224 applications covering 418 blocks of the UK Continental Shelf, the most ever received and 37 more than the previous high received in the last licensing round.
In this latest round, Apache has been offered 14 blocks in the northern part of the North Sea, where it will be required to acquire 3D seismic data. Most offers have been made in the central North Sea, where BG Group has been offered seven blocks and Shell has been offered five blocks. In the central North Sea, Maersk has been offered four blocks while Nexen has been offered 17 blocks, which includes a commitment to drill at least four wells on two of these blocks.
Premier Oil has been offered eight blocks in the central zone and Total has been offered 16 blocks in the west of the Shetland Islands. Total has also been offered four blocks in the northern North Sea and two blocks in the central North Sea. Other companies that have been made license offers include BP, Centrica, ConocoPhilips, E.ON, GDF Suez, OMV, Statoil and Tullow Oil.
Aldous commenting on the announcement said:
“The success of this licensing round is a significant step forward along the path towards sustainable investment in UK oil and gas, from which we shall see significant benefits in years to come. Moreover Lowestoft and Waveney engineering companies stand to benefit from the opportunities to tender for contracts, thereby securing and creating jobs.”
